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This is my first ever post. I have read, studied and learned much from reading the MF boards over the last few months. A big thank you to everyone that participates. Here's my situation and questions:

My wife has inherited 1/4 of an IRA (non Roth) from the passing of her father. The current value of her share is about $138,800. Her father's account is with Merrill Lynch. He was 76 and had begun taking distributions. The assets are mostly in stocks with a couple of thousand in cash. My wife's mother is also deceased. The Merrill Lynch broker said that the life expectancy for distributions would be based upon the life expectancy of my wife's oldest sibling who is 49. A distribution was already taken this year by her father.

My questions are: 1. Is there any condition in which we would want to take a lump sum distribution and pay the tax? 2. Should we choose to "annuitize," will the Merrill Lynch guy want us to set up a special IRA account for distribution purposes? If setting up an account is necessary, can we do that at whatever brokerage we choose? 3. Would the securities remain in the account and can the account be actively managed?
Thank you! I will be excited to get replies.
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