Inherited IRA Distribution by Non Spouse 10% Penalty?
Son inherited an IRA from Dad.. Dad was taking RMD’s.
Monies now in inherited IRA
Son wants to withdraw more than the RMD.. Is there a 10% penalty on the excess over RMD?
Thanks in advance.
Son inherited an IRA from Dad.. Dad was taking RMD’s.
Monies now in inherited IRA
Son wants to withdraw more than the RMD.. Is there a 10% penalty on the excess over RMD?
Thanks in advance.
Notifications
Permalink Submitted by Alan - IRA critic on Fri, 2015-03-06 02:13
There is never a penalty on inherited IRA distributions, no matter how much is withdrawn. But there is a 50% penalty on the shortfall for failing to withdraw at least the RMD amount.
Permalink Submitted by Geoffrey Kasher on Fri, 2015-03-06 13:40
thanks