Ask Terry Questions Inherited IRA

Inherited IRA

By Terry Savage on September 20, 2022 | Financial Planning / Retirement

I have an inherited IRA I acquired this year. Since the relative passed early in the year, they did not take the RMD for 2022 yet. Before transferring this to an inherited IRA, we did the RMD for the account which we will pay taxes on. I know I am required to empty this IRA within 10 years, but do I need to take an RMD this year too?

Terry Says

YES! Since the original owner had already started taking RMDs, you will have to take an RMD every year — as well as totally emptying the account within 10 years. The custodian of this inherited IRA will calculate the amount for you.

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