Does an inherited IRA have to be withdrawn in 10 years?
The SECURE Act and Inherited IRAs
You are correct.
You must withdraw the inherited funds within 10 years and pay income taxes on the distributed amounts. Since withdrawals are required, you won't pay the 10% penalty if you're under the age of 59½.May 18, 2023
There are a few exceptions to the 10-year rule include payments made to an eligible designated beneficiary (a surviving spouse, a minor child of the account owner, a disabled or chronically ill beneficiary, and a beneficiary who is not more than 10 years younger than the original IRA owner or 401(k) participant).
Other than the above exceptions all funds must be drawn out by Dec 31st in the 10th year after death.
I hope it helps, please let us know if you have any additional questions.
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