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Subject: Beneficiary taking RMD option for inherited IRA or retirement plan

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    #1

    Subject: Beneficiary taking RMD option for inherited IRA or retirement plan

    If a beneficiary opts to use the lifetime RMD distribution method for an inherited IRA or retirement plan, and then in a subsequent year, takes MORE than the RMD, will he or she be subject to early withdrawal penalties if they are not yet 59 1/2?
    Evan Appelman, EA
    Tags: beficiary, early withdrawal penalty, inherited ira
    #2
    An inherited IRA is not subject to early withdrawal penalties.

    Comment

      #3
      That's right. An IRA or other retirement plan) that is in "RMD status" is not subject to penalties for taking out too much ... only too little.
      Roland Slugg
      "I do what I can."

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