If I received $10,000 from a Beneficiary IRA, how will that effect my taxes next year? Should I take it all at one time?

[fanfare]

You will have to become educated on Inherited IRAs.

The rules depend on 

your age,

the owner's age when they died,

the year in which the owner died.

The rules are in IRS  PUB 590B.

[rjs]

It's not clear what you mean by "I received $10,000 from a Beneficiary IRA." If the money has already been taken out of the IRA, you will have to report the full amount as income in the year you received it, and pay tax on all of it. Or do you mean that you received the beneficiary IRA, but the money is still in the IRA, and you are the beneficiary?

If the money is still in the IRA, there will be a minimum amount that you have to take out each year. That's called the Required Minimum Distribution, or RMD. You can take more than the minimum if you want to. Any money that you take out gets added to your income and you have to pay tax on it. If you take the entire amount out in one year, it will all be added to your income and you will have to pay tax on all of it that year, so you might prefer to spread out your withdrawals. In most cases you will have to take it all out within 10 years, even if doing so requires taking more than the RMD.

[Opus 17]

If you are the owner of a beneficiary IRA, the money is only taxable when you take it out. In most cases, you will be required to take the money out before the end of 10 years, although there are a few exceptions depending on the exact circumstances.