Inherited IRA withdrawal under 59 1/2
Client has a stretch inherited IRA; mom was over 70 1/2 and taking distributions. Client is 55 and wants to know if she would incur a penalty if she took more than the RMD.
Client has a stretch inherited IRA; mom was over 70 1/2 and taking distributions. Client is 55 and wants to know if she would incur a penalty if she took more than the RMD.
Permalink Submitted by Alan - IRA critic on Wed, 2016-08-03 18:27
No penalty, just ordinary taxes on all amounts distributed. The only penalty exposure is for failing to distribute the full amount of the RMD.