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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120807  
Subject: Re: IRA Inheritance "Mix & Match" Date: 5/15/2002 9:12 AM
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Whoops, I am confused now. Say I inherit an IRA with $100 during 2002. The IRA still has a balance of $100 at 12/31/02, which the IRS' table indicates leads to a MRD of $2.5 taken at any time in 2003. I thought if I take out more than $2.5 then I must use the five year rule and take all of the assets in the IRA out as distributions during the five year period as defined (by 12/31/2007). Is it correct that I could take out whatever I want each year as long as I take at least the MRD ($2.5 in 2003, etc.)?

That's correct. The MRD is a minimum required distribution, not both a minimum and maximum distribution. See IRS Pub. 590, Individual Retirement Arrangements, pg. 31.

www.irs.gov/pub/irs-pdf/p590.pdf

Ira
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