Ask Terry Questions Inherited Inherited IRA

Inherited Inherited IRA

By Terry Savage on August 10, 2021 | Financial Planning / Retirement

My brother passed at age of 55 (2007). My mother inherited his IRA at the age of 77 and passed at the age of 86 (2015). In 2015 I inherited the IRA at the age of 59. Vanguard set up my RMD with the intent to close it out under the ten year rule. Today, I’m told the ten year rule should have been based on my mothers age and not mine. What is the correct rule? And if I need a Tax Attorney, can you recommend one? Thank you in advance for your help.

Terry Says

Ha — now I understand the double wording in your headline. No, you don’t need an attorney. This is complex, but the law just changed to the10-year rule. And since you inherited after that law was passed, you now have only 10 years to let it continue to grow and then it must be liquidated.

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