Beneficiary IRA withdrawal?
October 12th, 2008 by IRA Rollover
S asked:
I was a beneficiary of my mother’s IRA and 40lk when she died in 2006. The IRA is in a Beneficiary IRA and the 40lk was rolled into a Beneficiary Rollover IRA. I have been taking the RMD’s for the past two years. My question is, can I take a much larger distribution this year (about 1/2 the current account balance) from the Rollover IRA? Since the RMD is a MINIMUM distribution, I am assuming I can take a larger distribution if I wish, with no early withdrawal penalty. I understand it will be taxed as income at the current income tax rates.
I was a beneficiary of my mother’s IRA and 40lk when she died in 2006. The IRA is in a Beneficiary IRA and the 40lk was rolled into a Beneficiary Rollover IRA. I have been taking the RMD’s for the past two years. My question is, can I take a much larger distribution this year (about 1/2 the current account balance) from the Rollover IRA? Since the RMD is a MINIMUM distribution, I am assuming I can take a larger distribution if I wish, with no early withdrawal penalty. I understand it will be taxed as income at the current income tax rates.
Thanks!
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