For some people, inheriting an IRA can feel like a financial windfall. But before you decide what to do with the money, there's a key question: How much will you actually keep after taxes?

The answer depends on more than the IRA balance. Where you live, your relationship to the person who left you the account, the type of IRA you inherited, and when you take the money out also matter.

That's why two people can inherit IRAs with the same balance and potentially face different tax bills. One beneficiary may have flexibility over when to take distributions, while another might have to empty the account within a set period. An heir in a state that taxes IRA distributions could owe more than someone in a state that doesn't.

Here's more to know about key factors that affect your inherited IRA tax burden.

To understand how much of an inherited IRA you'll keep, it helps to start with some basic tax rules.

Generally, inheriting an IRA isn't itself a taxable event for federal income tax purposes.…