Inherited IRA RMD
In an inherited IRA for a client who is under 59 1/2, if they take more than the required minimum distribution, will they pay the 10% penalty on the amount over the RMD? 😐
In an inherited IRA for a client who is under 59 1/2, if they take more than the required minimum distribution, will they pay the 10% penalty on the amount over the RMD? 😐
Permalink Submitted by Edward Czapor on Fri, 2011-03-11 17:08
No, there is never a 10% penalty with an Inherited IRA due to the death exception. Any amount including the entire account can be withdrawn without penalty.
Permalink Submitted by Stuart Cameron on Fri, 2011-03-11 17:17
Thanks, just confirming. IRS Pub 590.