How to take money out of Inherited IRA?

Question

Hello,

A family member passed and we were left with an inherited IRA and we were just told to ask a tax consultant in regards to taking money out (so it can be taxed appropriately). Not sure where to start though (we have to slowly get it out within the next 10 years) so just wondering if we have to pay a professional to do it or if anyone knows the steps to take.

Thanks!

MatthewD · Answer

Hi Pblaimont,

I suggest you start with the company where that IRA is being held.  Talk to your retirement administrator. They can help you figure out how much to take each year.  Have them withhold enough in federal taxes on each distribution. A good rule to follow is to use your marginal tax rate you paid last year.  For example, 15% or 20% would be a starting point.