Inherited IRA Distribution Rules
You’ve inherited an IRA. Do you have to take Required Minimum Distributions? What are the rules for this account? Check out our Inherited IRA Distribution guide.
Navigating the maze of rules for inherited IRAs can make creating a plan for your inherited retirement account a daunting task. You must understand the complex Required Minimum Distribution rules, know if you are an eligible or non-eligible designated beneficiary, and determine the tax ramifications of current and future distributions. Understanding how these factors fit together is key to avoiding costly mistakes and making the most of your inheritance.
To help simplify the process, we’ve created a flowchart that walks you step-by-step through the main considerations for distributions from inherited traditional IRAs. This flowchart highlights:
Whether you qualify as an Eligible or Non-Eligible Designated Beneficiary, and what that means for your distribution obligations.
How distribution rules differ depending on when the original account owner passed away.
The scope and application of the “10-Year Rule” for beneficiaries.
The Required Minimum Distributions (RMDs) rules and how life expectancy factors into the calculation.
Download our Inherited IRA Distribution Guide here.
While checklists and flowcharts can help you identify different opportunities, we are always available to meet with you to discuss your financial needs and goals, and help to identify what the best opportunities are for you.
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This content is provided by Windward Private Wealth Management Inc. (“Windward” or the “Firm”) for informational purposes only. Investing involves the risk of loss and investors should be prepared to bear potential losses. No portion of this blog is to be construed as a solicitation to buy or sell a security or the provision of personalized investment, tax or legal advice. Certain information contained in the individual blog posts will be derived from sources that Windward believes to be reliable; however, the Firm does not guarantee the accuracy or timeliness of such information and assumes no liability for any resulting damages.
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