@mapaww - the challenge with RMDs is there is no way to distribute efficienty. it just has to occur and ger reported on your daugther's tax return. There is no 'wiggle' room or alternative approach.
is she taking the absolute minimum? that should only be 1.5% or so of the IRA balance, so if that is the case, the IRA is quite large (as she is creating kiddie tax issue) and will continue to reap benefits to her over her life.
the kiddie tax doesn't kick in until she has income of $12,950 and unearned income exceeding $2300.
How large is this IRA?
Her best strategy is thanking Gramps in prayer each night for being so wonderful to her and setting her up for life. The IRS will do similar as her 32% 'partner'.
ps the decision for Gramps to leave the IRA to his granddaughter and not his children was the most efficient tax strategy....because it permitted his granddaugher to distribute the RMDs over HER long life and not the shorter life of her parents.
