Hello Acton,
When you inherited an IRA from someone other than your spouse, you basically have 3 options as to how you make take the distributions.
1. You may take the entire distribution at the time you inherit the IRA.
2. You may roll over the funds in to your own inherited IRA and then withdraw those funds each year in any amount you wish, as long as the entire amount is withdrawn within 5 years.
3. Roll over the funds in to your own inherited IRA and choose the option to have payments made to you each year based on your remaining lifetime expectancy. Those withdrawal amounts are determined by tables furnished by the IRS to the custodian of your IRA account.
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Thank you Acton
Hello again Acton,
Yes, that is correct. If you chose the 5 year option, you may take any amount you wish each of the next 5 years, as long as the entire account is depleted by the end of the fifth year.
Accountant
25+ years tax consulting. Specializing in returns for US citizens living abroad