tax laws for inherited ira
1 Generally, you must take distributions during your lifetime or within five years after the original account holder passed away. 2  With an Inherited Traditional IRA, youâll pay taxes on any distributions you take.3  Rollover, SEP, and SIMPLE IRAs become Inherited Traditional IRAs.nherited IRA Withdrawal Rules. With an Inherited IRA, you need to take annual distributions no matter what age you are when you open the account. This doesnât apply if you've simply transferred another IRA to your own IRA.