How much are you required to withdraw from your inherited retirement account(s)?
If you’ve inherited an IRA and/or other types of retirement accounts, the IRS may require you to withdraw a minimum amount of money each year, also known as a Required Minimum Distribution (RMD).
If you simply want to withdraw all of your inherited money right now and pay taxes, you can. But if you want to “stretch” the IRA proceeds and defer taxes as long as possible, there are certain distribution requirements you must comply with.
How are required minimum distributions different for inherited retirement accounts? When you inherit an IRA and/or other retirement account, additional rules come into play when determining your RMD. While some factors—like the account holder’s birthday—seem pretty straightforward, other rules might catch you by surprise. To be sure about the RMD for your inherited account(s), be sure to speak with a financial professional before making any decisions.