Sorry, you owe the tax. The only way to limit the tax is to avoid taking so much that you are pushed into a higher tax bracket.
For example, if you are single with no dependents, income up to about $62,000 is taxed at 12%. Between $62,000 and $115,000, you will pay 22%. So if your ordinary income is $42,000, you can withdraw about $20,000 and stay in the 12% bracket. If you withdraw more, the extra will be taxed at 22%.
There are also 3 other rules you must follow.
1. If the previous owner was older than their RMD beginning date (required minimum distribution), and they did not withdraw their RMD for 2024 before they died, you must withdraw at least that much and pay tax on it. Their RMD is based on their age in 2024.
2. You must withdraw at least a minimum amount each year starting in 2025 (your own RMD) based on your age. You can withdraw more, of course, but you must withdraw at least the minimum amount for your age and the rules for inherited IRAs.
3. You must withdraw all the money and close the account by the end of the 10th year after the previous owner's death.
This answer has been verified for accuracy by an Intuit expert employee
