Inherited IRA - 10 Year Question

[mconfer1000]

I have gotten some conflicting information about Inhertied IRA. I am a non-spousal recipient of an inherited IRA. The individual passed away in 2023. It seems like I have 10 years to withdraw the balance to $0.

However it seems like 2023 does not count in that 10 year timeframe, because the year of death does not count. That would mean I have until December 31st 2033 to take the account to zero. Is that correct?

Can you provide any additional details on Inherited IRA's that I should be aware of?

Thank you.

[KarenL4]

Hi, mconfer1000

Sorry for your loss. 

You are correct that you have 10 years to liquidate the account and that your withdrawal(s) must be completed by the end of 2033. 

Here is an excerpt from a relevant IRS publication:

10-year rule.

The 10-year rule requires the IRA beneficiaries who are not taking life expectancy payments to withdraw the entire balance of the IRA by December 31 of the year containing the 10th anniversary of the owner’s death. For example, if the owner died in 2022, the beneficiary would have to fully distribute the IRA by December 31, 2032. The beneficiary is allowed, but not required, to take distributions prior to that date.

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Regards,

Karen