Inherited an IRA? The 10-Year Rule Changes Everything

If you inherited an IRA from a parent, you may have heard that you have 10 years to empty the account. But that doesn’t mean you should simply divide the balance by 10 and withdraw the same amount every year. In this video, I walk through how I think about an inherited IRA from a financial-planning perspective and why the 10-year rule should be treated as more than just a deadline. We’ll look at why the specific beneficiary rules that apply to you matter, how required distributions can differ depending on the situation, and why the minimum amount you’re required to withdraw may not be the amount that makes the most sense for your overall plan. I’ll also explain how your income, retirement date, taxes, investment strategy, and other major financial events can affect when it may make sense to take distributions over that 10-year period. We’ll also discuss why inherited traditional IRAs and inherited Roth IRAs can create very different planning decisions, and why the investment strategy inside the account should be coordinated with the timeline for taking money out. The goal isn’t simply to make sure the account is empty by year 10. It’s to make intentional decisions during years one through nine so you aren’t forced into a potentially costly decision at the end. If you’ve inherited an IRA and are trying to figure out when and how much to withdraw, this video will help you think through the decision more strategically. You can learn more about how I help clients coordinate inheritances, investments, retirement, taxes, and long-term financial goals here: https://www.rallywb.com/team/kristina...