Stretch IRA Distribution Changes
If I inherited an IRA and chose the Stretch option can I choose to take a lump sum after a year or two of receiving my RMD’s?
If I inherited an IRA and chose the Stretch option can I choose to take a lump sum after a year or two of receiving my RMD’s?
Permalink Submitted by Alan Spross on Mon, 2011-02-07 18:12
Yes, you can distribute as much as you wish anytime you wish, but of course it will probably be 100% taxable or close to it. The only penalty you would incur applies if you fail to take out your RMD amount, but you can always take out more. Assuming you inherited this from a non spouse, note that you cannot roll over any distributions you take, so if you want to change custodians it must be done by direct transfer.