Inherited IRA RMD-Comments open

[I am He]

There's a story I just came across regarding commenting on a proposal to re-instate RMDs on inherited IRAs. Yeah, I know, it's "already been decided," but...

https://www.forbes.com/sites/ashlea...ixes-10-year-stretch-for-most-inherited-iras/

I used the link from that article to comment but I think the below mentioned one is perhaps a more direct route.

I hope these links are legit:
https://www.regulations.gov/docket/IRS-2022-0003/document

My apologies if this is old news.

 

[Texas Proud]

It kinda surprised me that the 'take it all out in year 10' was the way they went in the first place...


It does not surprise me.

 

[oldtimer]

The regulations are proposed, not final.

 

[oldtimer]

It kinda surprised me that the 'take it all out in year 10' was the way they went in the first place...


It does not surprise me.

'take it all out in year 10' actually is take it it all out by end of year 10.

Until these new regulation become final, they are not official and one should not rush to act on them immediately. Rush to get an understand them and investigate possible future actions, but hold off implementing any new actions on the retirement plans covered by the proposed regulations. There should be more clear guidance this fall than the current over the top reactions out there.

 

[Texas Proud]

Yes, I know it is take it out by year 10 buy most were saying take it all out IN year 10...


It matters how much you need to take out... if you go a million it is probably beneficial to spread it out evenly.... otherwise delay might be the way to go...


My mom died in 2019 so I do not fall under the new rules...

 

[jldavid47]

I'm about to inherit 1/2 of a small IRA. I'm cashing it out this year which will be more than the RMD for 2022 so it doesn't matter to me what the rule will be.

 

[Bamaman]

I'm about to have to start RMD's on my own Rollover IRA. And with the recent downturn in equities and a year in turmoil, 2022 withdrawals could hurt.

We often don't think about having Uncle Sam as an investment partner, but at one point in time it'll happen.

I'm just thankful that I've made it 14 years in ER without having to touch the IRA/401K's.

And to those that have inherited an IRA, just be glad you're receiving the funds--even if you do have to pay taxes. I just hope you have room within your tax bracket to where you don't get bumped up a notch or two. Taking it over numerous years might be your best way to take the money.

 

[RetiredHappy]

I'm about to inherit 1/2 of a small IRA. I'm cashing it out this year which will be more than the RMD for 2022 so it doesn't matter to me what the rule will be.

I am sure this is what you meant... I believe you still need to take RMD for 2022, in addition to whatever you take out from the inherited IRA.