topic Inherited IRA created at company A. Then I transferred that to Company B as an Inherited IRA. Then, I pulled 30% in Retirement tax questions

Inherited IRA created at company A. Then I transferred that to Company B as an Inherited IRA. Then, I pulled 30%

boatrg — Wed, 04 Feb 2026 19:28:36 GMT

My mother passed away in 2025. Since I am the only remaining IRA beneficiary, Company A created an Inherited IRA in my name. I then did a Direct transfer to Company B, as an Inherited IRA. Then a few weeks later, I withdrew 30% to give to my sister-in-law as her part of the inheritance. Taxes were withheld at my request by Company B. Question: Is there a time limit before I can withdraw money from the transferred inherited IRA? I am aware of my Inherited RMD requirement, which should be satisfied by the withdrawal I took.

Thanks

Re: Inherited IRA created at company A. Then I transferred that to Company B as an Inherited IRA....

DavidD66 — Wed, 04 Feb 2026 21:34:19 GMT

No. There is no time limit before you can make a penalty free withdrawal from the Inherited IRA. You can withdraw 100% of it tomorrow if you wish. The only requirements are for how soon you must make withdrawals.

Re: Inherited IRA created at company A. Then I transferred that to Company B as an Inherited IRA. Then, I pulled 30%

dmertz — Wed, 04 Feb 2026 22:23:38 GMT

Note that whatever amount you gave to your sister-in-law is a gift from you to your sister-in-law. It is not anything that sister-in-law inherited. You were the one who inherited these funds to do with as you choose and you chose to gift a portion to your sister-in-law. If the amount that you gifted to your sister-in-law in 2025 is more than the 2025 gift exclusion of $19,000, you must file a 2025 Form 709 Gift Tax Return.

Re: Inherited IRA created at company A. Then I transferred that to Company B as an Inherited IRA. Then, I pulled 30%

Opus 17 — Wed, 04 Feb 2026 22:28:20 GMT

You must withdraw at least the RMD amount each year (which I'm sure you exceeded for 2025), and you must withdraw the entire amount and close the account by the end of the 10th year. (Which rules you said you know.)

Other than that you can withdraw as much as you want any time you want. You will of course pay income tax (if it is not a Roth IRA), and this may affect your other tax situations, so you should be mindful of things like income limits for certain credits and deductions, IRMAA if you are retired, and your MAGI if you plan to make deductible IRA contributions. Other than those considerations, you can withdraw whatever you want whenever you want.