I Inherited a $450k IRA and I'm in the 32% Tax Bracket. What's the Smartest Withdrawal Strategy?

Core Points - The article discusses the rules surrounding inherited IRAs, emphasizing that non-spouse beneficiaries have a 10-year withdrawal period [1][2] - It highlights the importance of understanding tax implications when withdrawing funds from inherited IRAs, particularly for those in higher tax brackets [3][4] Summary by Sections Inherited IRA Rules - Non-spouse beneficiaries must withdraw funds within 10 years of the original IRA owner's death, with specific rules for different types of heirs [1][2] Tax Implications - Withdrawing the entire amount at once can push individuals into higher tax brackets, particularly affecting those in the 32% tax bracket who may exceed the 35% threshold [3][4] - Married couples filing jointly face different income thresholds for tax brackets, making immediate withdrawals less advantageous compared to single filers [4] Withdrawal Strategies - Beneficiaries can choose to withdraw funds over the full 10-year period to manage tax liabilities effectively, allowing for tax-deferred growth during that time [7] - Immediate withdrawal sacrifices potential tax-deferred growth and may result in a higher overall tax burden [8]