How to Split an Inherited IRA Between Beneficiaries

When multiple people inherit an IRA, how it’s split can make a huge difference in taxes and timing.

An inherited IRA can be divided so each beneficiary receives their own share—but it must

be done correctly and on time. If siblings or family members don’t split the account by December

31 of the year after the owner’s death, the IRS may force faster withdrawals and higher taxes.

The right approach is to create separate inherited IRAs for each beneficiary. This allows everyone

to manage their own timeline and keep tax-deferred growth intact. Once split,

most non-spouse beneficiaries have up to 10 years to withdraw the funds. Miss a step,

title it wrong, or wait too long—and costly mistakes can happen. That’s where Estate