10 Year Rule
If someone waits until the last year (Year 10) to withdraw the full amount of an inherited IRA (having not withdrawn any money year 1-9) are there any additional taxes or fees.
If someone waits until the last year (Year 10) to withdraw the full amount of an inherited IRA (having not withdrawn any money year 1-9) are there any additional taxes or fees.
Permalink Submitted by Alan - IRA critic on Thu, 2021-01-21 22:45
No additional taxes or fees, but having the entire balance distributed in a single year might spike your marginal tax rate for that year. Therefore, considering the amount of the IRA, for non Roth inherited IRAs, it might be wise to spread the distributions out over the 10 year period, perhaps taking out more in years when other taxable income is lower than average.