Clients just inherited an IRA account that we plan to stretch to minimize the taxes going forward. The client is 48 and the client has a son that is 14. I have talked to the current company where the inherited money is now, Vanguard, and the funds may be stretched and the first distribution must come out in 2016.

so my question is this: since a stretch is a process to let the client take the smallest distribution from the IRAs as legally possible without having to pay taxes on the whole account. If the clients, since both under age 59.5 wanted to take a distribution larger than the inherited RMD, I know they would have to pay tax, but would they also have to pay the 10% IRS penalty for a pre 59.5 withdrawal since the account was set up as a stretch?

I think the answer is that they could take any withdrawal over the established minimum RMD without a 10% penalty but having to pay the taxes but i need to confirm that.

Thanks for the help.
Matt