You can save a lot of money if you inherited an IRA from someone whose estate was big enough to be subject to the federal estate tax.  Basically, you get an income-tax deduction for the amount of estate tax paid on the IRA assets you received.  Let’s say you inherited a $100,000 IRA and the fact that the money was included in your benefactor’s estate added $40,000 to the estate bill, you get to deduct that $40,000 on our tax returns as you withdraw the money from the IRAs.  If you withdraw $50,000 in one year, for example, you get to claim a $20,000 itemized deduction on Schedule A.  That would save you $5,600 in the 28% bracket.