dmertz
Level 15

Retirement tax questions

This information in 2022 IRS Pub 590-B is not current (or is at least incomplete and confusing) with respect to the proposed regulations that the IRS is now following and is largely the reason that the penalty for not taking RMDs under the 10-year rule by those required to do so was waived for 2021 and 2022.  The revised regulations require you to take annual RMDs under the 10-year rule because your parent died after their required beginning date for RMDs.

 

As NCPerson said, it likely makes sense to take more than the required RMD each year to avoid a big tax hit in year 10 when any remaining amount must be distributed but you'll need to evaluate that based on your personal tax situation.  Also, tax rates are scheduled to increase back to their previous levels in 2026, so it might be advantageous to make larger distributions now rather than later.