dmertz
Level 15

Retirement tax questions

As Opus 17 indicated, you are subject to the 10-year rule (as you indicted in #1) and, because your mother died after her required beginning date for RMDs, you are also subject to annual RMDs (as you indicated in #2) using the factor from the Single Life Expectancy table based on your age on your birthday in 2022, reduced by 1 for each subsequent year.  The penalty for failing to take such an RMD in 2022 (and 2021) was waived by the IRS due to confusing information provided by the IRS prior to the IRS providing the proposed regulations in early 2022 based on the tax-code changes made by the SECURE Act.

 

The annual distributions are minimum distributions.  You may want to take out more than that each year to avoid needing to take a large taxable distribution in year 10.  Also, tax rates are scheduled to increase in 2026.