I'm getting some questions about annual required minimum distributions (RMD), so here's some info on the general rule.

If you inherited a traditional IRA, the general rule is that the account needs to be cleared out within 10 years.  During that time, if the decedent had already started taking distributions prior to death,  then during years #1- #9, you are required to take an annual distribution by 12/31 of each year.  This RMD is calculated by taking the prior 12/31 year end balance of the IRA and dividing by a factor.  That factor is based on your age (not the decedent's).  The brokerage firm where the IRA is held will have an online tool to calculate the RMD for you.

If you don't take the annual RMD, IRS can assess a 25% penalty on amounts not distributed.  But there's a twist:  due to changing rules on RMD requirements, IRS has not enforced the 25% penalty up until now and has recently announced it will NOT enforce the penalty for 2024.  But IRS has announced it WILL enforce starting in 2025.

This means if you don't take the RMD this year, no penalty.

With that said, it might still be to your benefit to comply and take it anyway this year.  If you don't and the account balance remains high, then taking the large balance in year 10 may put you into a higher tax bracket.  So perhaps best to take a little along the way,  to pay less tax.

If you have questions, please let me know