@ProbablyMike wrote:
I inherited a IRA in 2007 from my father. He was making rmds, being that he reached the age. I made an initial withdrawal in 2007 and then I left the IRA in Fidelity forgetting about it, until speaking with Fidelity today about another matter, and they mentioned it. The advisor told me to find an estate CPA but I thought I would ask here. So it has been sitting for 17 years, and has about quadrupled in value. My question is, what amount should I withdraw for this year, and is there any way to not be charged with penalties? I didn't know it had to be closed out in a relatively short time back then.
It would be better if you posted a new question instead of adding to a topic that is stale and has different facts.
However, I will ask someone who knows @dmertz
For the rules in place in 2007, you had two options. Either withdraw all the money and close the account in 5 years, or keep the account by making life expectancy withdrawals (RMDs) based on your age when your father died. You have therefore missed 17 years of RMDs, the official penalty for most of the years in question is 50% of the missed amount (for each year). I think, but am not sure, that what you need to do now is make a whopping big withdrawal, equal or more than all the RMDs you missed, and attach a request for penalty forgiveness to your tax return. It certainly is time to consider professional assistance. But perhaps my colleague will have a better perspective.
Going forward, you certainly need to start taking RMDs. And, the RMDs from this inherited IRA are separate from and calculated differently than the RMDs for any personally owned IRAs you have. You can't combine the RMD requirement for an inverted IRA and your own IRA.
