✉news BusinessPersonal Finance first seen 12 h ago, last 5 h ago, peak #17

Inheriting a $500,000 IRA: why waiting to withdraw could cost her

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 father's $500,000 IRA at age 54 plans to leave the account untouched until the tenth year. Because her father was already taking required minimum distributions, the IRS will expect annual withdrawals from the inherited account regardless, and any balance drawn in year ten will be taxed on top of her regular salary. The case highlights how the SECURE Act's 10-year rule interacts with RMD requirements, catching many beneficiaries off guard with unexpected tax bills.

Why now: It illustrates a common and costly misunderstanding of inherited IRA rules under the SECURE Act that affects many beneficiaries.

IRSSECURE Act

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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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