I have a 13-year-old grandson (with no earned income) that has an inherited IRA from his grandmother. Understanding the 10-year withdrawal rule for Inherited IRA's, what is his best withdrawal strategy to minimize taxes on any withdrawals? It seems like he should start right now taking a withdrawal equal to the Kiddie Tax standard deduction (I believe it's around $1250 or so) then another $1250 or so which would be taxed at the child marginal rate, and do that each year as long as he can always staying below the withdrawal rate that would kick in the Kiddie Tax at his parent's marginal rate. Am I right or is there a better strategy?
