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Inherited IRAs

I inherited one this year. No required minimum distributions (RMD), but all money has to be withdrawn within 10 years. I could have let it sit there untouched and withdrawn it all in the 10th year. However, Mom hadn't taken her RMD before she passed, so I had to take her RMD for her year of death.
 
Georgia Terrapin said:
I inherited one this year. No required minimum distributions (RMD), but all money has to be withdrawn within 10 years. I could have let it sit there untouched and withdrawn it all in the 10th year. However, Mom hadn't taken her RMD before she passed, so I had to take her RMD for her year of death.
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I am pretty sure you will have to take a RMD every year. the rules have changed again
 
Been there and currently doing it. I'm 59 and in 2018 I was the beneficiary of my father's 401K. I now have a 401K inherited IRA that I selected a financial manager for. I interviewed several and asked two questions:

1. How long have you been a financial manager?
2. Are you a millionaire? I figure if you have been giving advice for 20yrs you should atleast be a millionaire using your advice.

A guy at Morgan Stanley was the only one to answer 20+ years and yes he had a million dollars. So that is whom I chose to handle my account. Instead of monthly distributions I take one lump sum and deduct for taxes.

Bill Stash MBA, CFP®
Executive Director | Financial Advisor
The Amelia Island Group at Morgan Stanley
9900 Amelia Island Parkway Suite 600, Fernandina Beach, FL 32034
(O) 904-572-3242
bill.stash@morganstanley.com
https://advisor.morganstanley.com/the-amelia-island-group
 
testdepth said:
Been there and currently doing it. I'm 59 and in 2018 I was the beneficiary of my father's 401K. I now have a 401K inherited IRA that I selected a financial manager for. I interviewed several and asked two questions:

1. How long have you been a financial manager?
2. Are you a millionaire? I figure if you have been giving advice for 20yrs you should atleast be a millionaire using your advice.

A guy at Morgan Stanley was the only one to answer 20+ years and yes he had a million dollars. So that is whom I chose to handle my account. Instead of monthly distributions I take one lump sum and deduct for taxes.

Bill Stash MBA, CFP®
Executive Director | Financial Advisor
The Amelia Island Group at Morgan Stanley
9900 Amelia Island Parkway Suite 600, Fernandina Beach, FL 32034
(O) 904-572-3242
bill.stash@morganstanley.com
https://advisor.morganstanley.com/the-amelia-island-group
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Very good on your decisions. Also I think you have to take it all out of an IRA by the time you've had it 10yrs. This is what I understand. Maybe you're advisor has you working on that direction
 
basstracker89 said:
Very good on your decisions. Also I think you have to take it all out of an IRA by the time you've had it 10yrs. This is what I understand. Maybe you're advisor has you working on that direction
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Hello, what you are saying is true only if the non spouse person inherited the IRA "AFTER" 2020. Mine started in 2018.

The grandfather rule for inherited IRAs applies to non-spouse beneficiaries who inherited an IRA from someone who died before 2020:

  • Grandfathered in
    These beneficiaries are grandfathered in under the "Stretch Rule," which allows them to withdraw an RMD based on their own life expectancy, not the original account holder's.
 
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