turbotax icon
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

RMD of Beneficiary IRA

I will be 59 years old this August. My mother passed away July 12, 2021 (My father pre-deceased her). As part of her estate settlement, I was one of her beneficiaries to her IRA. The financial advisor who was handling her IRA opened a beneficiary IRA account in my name. It is my understanding that I have 10 years to withdraw all the money in that account. Since that money is added to mine an my wife's joint income (we file married joint), I have chosen to make effectively even withdrawals each year (over the 10 year period) so as to minimize the increase to our taxable income. First am I correct that the money must be withdrawn 10 years from my mother's death; and are there any concerns that I need to take into consideration beyond what I've described with regards to this beneficiary IRA? 

1 Reply
Employee Tax Expert

RMD of Beneficiary IRA

Does an inherited IRA have to be withdrawn in 10 years?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.

Enjoy your day!!

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing
Manage cookies