If you have any money, you will be interested in this family trust

[Shootist Comitatus]

https://insights.smartasset.com/what-is-...4b3abdc15f


I have a trust and my genetic relatives really like it.

[dncdawg]

I inherited an IRA that I've got to figure out how to deal with. The Secure Act went into effect this year and it requires it to be fully withdrawn within 10 years, and you have to draft some percentage out annually. I haven't researched it much, but it looks like I'm screwed and will either have to pay the taxes on each withdrawal, or if I take the whole thing out and put it into something else, pay taxes on that full lump sum withdrawal.

[McDonoughDawg]

I inherited an IRA that I've got to figure out how to deal with.  The Secure Act went into effect this year and it requires it to be fully withdrawn within 10 years, and you have to draft some percentage out annually.  I haven't researched it much, but it looks like I'm screwed and will either have to pay the taxes on each withdrawal, or if I take the whole thing out and put it into something else, pay taxes on that full lump sum withdrawal.

I wouldn’t say screwed…you won’t owe the whole thing in taxes..draw out in 10 yearly payments..have them withhold taxes from each withdrawal. 

Otherwise give it to me..

[dncdawg]

I inherited an IRA that I've got to figure out how to deal with.  The Secure Act went into effect this year and it requires it to be fully withdrawn within 10 years, and you have to draft some percentage out annually.  I haven't researched it much, but it looks like I'm screwed and will either have to pay the taxes on each withdrawal, or if I take the whole thing out and put it into something else, pay taxes on that full lump sum withdrawal.

I wouldn’t say screwed…you won’t owe the whole thing in taxes..draw out in 10 yearly payments..have them withhold taxes from each withdrawal. 

Otherwise give it to me..

I just mean there's no way to reduce taxes on it.  If my mom was making withdrawals, she only had to pay taxes on the growth, but her tax rate was much lower than mine given her age and limited income, but since it's all pre-tax, I'll have to pay taxes at my rate on the full amount.  My plan is to use most of it for my kid's college fund, so I could convert it to a 503(b), but I'd have to pay taxes on the full amount at conversion and it would have limited growth opportunity in that, while I'll probably have better growth leaving it as an IRA in the investment elections I can make and adjust.  My mom's investment advisor doesn't really impress me, so I might just move it to another investment firm and take the annual withdrawal for the next 10 years and let them withhold the taxes like you said.