I inherited my mom’s IRA and must take $10K in 2025 RMDs, but there’s no cash. What should I liquidate?

Core Insights - Navigating inherited retirement accounts can be complex and stressful, especially after the death of a loved one, but understanding options can help avoid significant tax liabilities [1] Summary by Sections Inherited IRA Complexity - Inherited IRAs can be complicated, and beneficiaries like Becka may need to consult financial advisors or tax professionals before making decisions [2] Updated Rules for Inherited IRAs - The SECURE Act 1.0 and 2.0 introduced new rules for IRA distributions for accounts where the owner passed away in 2020 or later, eliminating the "stretch" IRA for many non-spouse beneficiaries, requiring them to empty the account within 10 years [3] Distribution Timeline - The 10-year period for emptying the account starts on December 31 of the year following the original account owner's death, meaning Becka must empty her inherited IRA by December 31, 2032, if her mother passed away in 2022 [4] Required Minimum Distributions (RMDs) - If the original account owner had been taking RMDs, Becka must also take annual RMDs as a non-spousal beneficiary, with penalties for missing these distributions [5] Penalties for Non-Compliance - Any remaining balance in the account after the 10-year period will incur a 50% penalty, emphasizing the importance of timely withdrawals [6] Options for Beneficiaries - Different options exist for various types of beneficiaries, including surviving spouses, adult children, minor children, or entities like trusts, affecting how they manage inherited accounts [6]