You can rollover an inherited IRA into a different account but it will always be considered an inherited IRA and will always follow the rules for an inherited IRA. You must cash out the account and close it within 10 years, which means withdrawing the money and paying the tax. You can't roll the money over into a personal (non-inherited) IRA to save for your own retirement.
You can withdraw the money, pay the tax, and then use that money to fund a new IRA. Your deductible IRA contributions are limited per the normal rules to $6000 if you are under age 50, and they may be further limited by your participation in a workplace plan. You can't directly move the inherited IRA into a personal IRA.
Withdrawals from an inherited IRA are subject to regular income tax but are exempt from the 10% penalty for early withdrawals even if you are under age 59-1/2. However, a large lump sum of income may place you in a higher tax bracket. You might also be required to pay estimated income tax to the IRS and your state when you make the withdrawal, to avoid an under-payment penalty at tax time.
Gifts of more than $16,000 per person must be reported on form 709, but there is no tax actually owed unless your lifetime gifts are more than $11 million.
There is no federal inheritance tax. A quick internet search indicates Georgia does not have an inheritance tax.
If you are not an "eligible" beneficiary, then you follow the 10 year rule.
An eligible designated beneficiary is the owner's surviving spouse, the owner's minor child, a disabled individual, a chronically ill individual, or any other individual who is not more than 10 years younger than the IRA owner.
The 10 year rule means you must withdraw all the money, pay the taxes, and close the account by December 31 of the year containing the tenth anniversary of the account owner's death.
The IRS is considering new rules that if the original owner was over age 72-1/2 (meaning they were required to take a required minimum distribution based on life expectancy) when they died, then the beneficiary must also take an RMD each year the account is open, unless they take more than the minimum required or cash out and close the account. If you don't cash out the account, you should check here at the end of November to see if an RMD will be required of you for 2022.
