I Inherited a $550k IRA and I'm in the 32% Tax Bracket. What's the Best Withdrawal Strategy?

SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. If you inherit a tax-deferred retirement account, like an IRA or a 401(k), you’ll pay income taxes on the money when you withdraw it. Those withdrawals are subject to your marginal tax rate, not the original owners. This can reduce the value of your inheritance, potentially by quite a lot if you are in a high tax bracket. For example, say that you’re in the 32% tax bracket and you’ve just inherited an IRA ...