I just inherited a $700k IRA - How should I handle the mandatory RMDs over the next decade?
Briefly

At age 73, individuals are mandated to take Required Minimum Distributions (RMDs) from their retirement accounts, which affects tax collection. RMDs are calculated based on a formula that considers total account balances, the individual's age, and life expectancy. Non-spouse beneficiaries inheriting IRAs have until December 31, 2025, to begin their RMDs and must deplete the account in ten years. Spousal beneficiaries have more options to delay distributions. Exceptions to the ten-year rule exist for certain individuals, such as minor children or disabled persons.
Once you reach the age of 73, you're legally required to take your Required Minimum Distributions (RMDs) so the government can collect taxes on your money.
To calculate your RMD, the IRS will use a formula that includes your total account balances, your age, your life expectancy, and your beneficiary life expectancies.
If you inherit an IRA as a non-spouse beneficiary, you must start taking RMDs by December 31, 2025 and completely empty the IRA in 10 years.
A spousal beneficiary can treat the IRA as their own and delay RMDs until age 73, or take them starting based on their own life expectancy.
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