Inherited IRA Distribution by Non Spouse 10% Penalty?

Submitted by Geoffrey Kasher on Fri, 2015-03-06 00:18

Son inherited an IRA from Dad.. Dad was taking RMD’s.

Monies now in inherited IRA

Son wants to withdraw more than the RMD.. Is there a 10% penalty on the excess over RMD?

Thanks in advance.



Submitted by Alan - IRA critic on Fri, 2015-03-06 02:13

There is never a penalty on inherited IRA distributions, no matter how much is withdrawn. But there is a 50% penalty on the shortfall for failing to withdraw at least the RMD amount.



Submitted by Geoffrey Kasher on Fri, 2015-03-06 13:40

thanks



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