Brother and I inherited a Traditional IRA from my mother who died in May of 2005. Each amount was for $35,000 apiece. Can we take out this money separately or do we both have to do the same thing ? We can withdraw this money by Dec. 31 of the fifth year following the year of my mothers death, right? How do I go about getting my funds? Do I have to take all of my funds at one time or can I take a portion of the money over the next five years? Sorry this is alot of questions , Thanks for your reply.
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IRA Options
Option one:
You can take the money and spend it. It will be subject to tax but no penalty since Mom died.
OR:
If Mom is already on RMD, You can "stretch" it based on the beneficairy age. Check with the custodian of the money as I'm working from memory on this one.
OR
If Mom is not on RMD you could withdraw the money over five years as long as the account is empty by the end of the year which contains the fifth anniversary of the death.
There may be more but that should be a starting point.
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