✉news BusinessPersonal Finance first seen 4 h ago, last 36 min ago, peak #18

Daughter's Plan to Delay Inherited $500,000 IRA Draws Tax Warnings

Original: She'll Inherit Her Father's $500,000 IRA at 54 and Plans to Leave It Alone Until Year 10. Because He Was Already Taking RMDs, the IRS Will Want a Withdrawal Every Year, and the Year-10 Balance Will Be Taxed on Top of Her Salary

A woman set to inherit her late father's $500,000 IRA at age 54 plans to leave the account untouched for a decade, but that strategy could backfire. Because her father was already taking required minimum distributions, the IRS will require annual withdrawals under inherited IRA rules, and the year-10 balance would be taxed as ordinary income on top of her salary. Personal finance commentators are flagging the plan as a likely tax mistake.

Why now: The plan conflicts with IRS required minimum distribution rules for inherited IRAs, prompting debate over the correct withdrawal strategy.

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• She'll Inherit Her Father's $500,000 IRA at 54 and Plans to Leave It Alone Until Year 10. Because He Was Already Taking RMDs, the IRS Will Want a Withdrawal Every Year, and the Year-10 Balance Will Be Taxed on Top of Her Salary · 24/7 Wall St.

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