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An Inherited IRA is either a traditional IRA or a Roth IRA acquired by the non-spousal beneficiary of a deceased IRA owner.
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Special rules apply to an inherited IRA. A tax deduction is not allowed for contributions to this IRA, a rollover to or from another IRA owned by the heir is not permitted, and the proceeds must be distributed and taxed within a specific period as established by the Internal Revenue Code.
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