Withdrawals from traditional IRA accounts, even when inherited, are considered part of adjusted gross income and are subject to the same tax rates as regular income, states The Motley Fool. These rates vary based on income levels, according to the Internal Revenue Service. Tax rate schedules are available at IRS.gov.
As of 2015, traditional IRA funds are tax exempt until the date that they are withdrawn from the investment account, states Forbes. A spouse can continue to contribute to the IRA account and allow the funds to accumulate until retirement. All other inheritors must begin to withdraw by Dec. 31 of the inheritance year and then can choose to withdraw a lump sum or spread withdrawals over the expected life of the IRA. Inherited Roth IRA accounts are tax exempt unless withdrawn prior to maturity.