Inherited IRA RMD

Is there a disallowance or penalty for taking more than the rmd of an inhereited ira in the first year?



No, a penalty only applies if LESS THAN the RMD is distributed in any year an RMD is required. Some people take more than the RMD from an inherited IRA and use that money to increase their contributions to their own retirement plans where RMDs will be many years away.

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