I inherited an IRA that was passed down two different times; do I qualify for a 5-year disbursement?
I inherited an IRA from my grandma who died at the age of 95 last year. She inherited the IRA from her son just months prior to her death. Do I qualify for a five-year disbursement? I think that I will get penalized if I don't withdraw by the end pf the year, but I am confused. I want to take out the least amount possible when I withdraw from the account.
The answer to this question can be slightly convoluted, I would call the company you custodian the assets at and have them look at the account and tell you how much you need to take. They will know. You should be able to stretch the IRA and will not be limited to the 5 year rule, but there are other factors that will play into this answer. Here is a link that can walk you through the rules of distribution. If you do not get an answer that sufices from the company managing the assets, I would call a tax adviser.
You can draw it over the 5 years. If you take that route, you do not need to take anything out this year- so long as the account balance is $0 by the times the 5 years is done.
Of course, depending on how much it is, whether you've been taking money out, and if you really want to stretch it, you could take the required minimum distributions out and take that over your lifetime as it continues to increase.