Which of the following statements about IRAs is true?

The correct statement regarding IRAs is that non-spouses can take distributions over their expected lifetime. This is known as the “stretch IRA” strategy, which allows a non-spouse beneficiary to take required minimum distributions (RMDs) based on their life expectancy. This can be a beneficial strategy as it allows the funds to continue growing tax-deferred for a longer period, ultimately providing the beneficiary with a steady stream of income over their lifetime.

The other options do not accurately reflect the rules governing inherited IRAs. For instance, inherited IRAs do not require closing within a year, and there are rules regarding the age at which distributions must be taken, especially for non-spouses. Furthermore, inherited IRAs are subject to rules about distributions, but these distributions usually do not incur the early withdrawal penalty, allowing flexibility in how and when a beneficiary accesses the funds.