Inherited IRA distribution
My client inherited a $1M IRA about 3 years ago. He has been taking out the required distribution yearly based on his life expectancy, he is 53 yrs old now. He wants to purchase some real estate and increase the distribution from his Beneficiary IRA to service the debt.
Can he take out more than the required distribution? Will there be pre-59.5 yr old penalties for the distributions over the required distributions?
Permalink Submitted by mk foss on Fri, 2008-10-03 17:07
THE RMDs are minimums, there are no maximums. He can take out as much as he’s willing to pay income tax on.
The 10% penalty does not apply to inherited IRAs.