Can RMDs stop?
Here is the scenario…my new client (Bob) inherited an IRA from his father and has been taking RMD’s based on Bob’s lifespan. Bob is now 65. Is there such a rule that he must take RMDs for a minimum of 5 years (or any length of time for that matter). Or now that Bob is over 59 1/2 he is allowed to take whatever amount he wants (above the RMD) without paying a penalty? Obviously income taxes will still apply.
Permalink Submitted by Alan - IRA critic on Thu, 2013-02-28 19:10
All along he could take as much as he wishes in excess of the RMD, since the only requirement is to withdraw the RMD as a minimum, but those RMDs must continue indefinitely until the IRA is drained. There is never a 10% penalty on any inherited IRA distributions because they are death benefits (code 4 on the 1099R).