Q. After a long court battle, my sister and I, both 65, will inherit an uncle’s IRA worth more than $1 million. He had already been taking Required Minimum Distributions when he died. We are both over 65. I’m looking for options other than just liquidating the account and paying the IRS off. What should I expect?
A. It’s time to get together with your tax preparer.
The rules governing Required Minimum Distributions depend on when the original account owner died and what the relationship was between the original owner and the inheritor.
“When, as here, the original account owner died before Dec. 31, 2019, a non-spouse inheritor has the option of withdrawing all of the money from the inherited IRA within five years or taking Required Minimum Distributions over his or her lifetime,” said Shirley Whitenack, an estate planning attorney with Schenck, Price, Smith & King in