Thanks for your response. I learned a great deal from you.
I got hung with the Inherited IRA account balance piece. Say, my grandkid receives $1 million traditional IRA from me because of my passing. Every year she will plan to take out $100,000 from her inherited IRA. So after year 3, her Inherited IRA balance would be $700,000. The accumulated $300,000 should have been taken out will be in her saving account or investment account or some sort, right? In other words, while her inherited IRA is shrieking, her personal investment account is growing. Her investment account doesn't have be marked as the inherited IRA, right? Sorry for the minute detail. Just want to be crystal clear. Pardon me.
Also you mentioned my last RMD will be taxable for my estate tax return. If my estate is less than Federal limit (i.e. $11M ish), I would not need to pay estate tax but a regular income tax on the last RMD piece and other income I received during the year I die. Is that right? You just hop me over to the estate tax return which I know nothing about. Ha.. I am excited to learn something new every day.
And thank you very much for sharing your knowledge. I truly appreciated it.
