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Subject:  Re: max roth beneficiary distrib? Date:  12/24/2010  2:45 PM
Author:  BruceCM Number:  67938 of 95557

For TIRA, RIRA and qualified retirement plan named beneficiaries who are individuals, the "M" in MRD or RMD means 'minimum'. That is, the IRS requires that these inherited account balances must be drawn down at a minimum rate. (for spousal beneficiaries, they can roll over the inherited balance into their own IRA and treat as their own)

The IRS has no restriction on maximum withdrawals. Indeed, one of the common behaviors of young adult beneficiaries is to, as soon as it is available, withdraw the entire inherited account balance regardless of the tax consequences.

Except in the cases of beneficiaries who are minors or incompetents, or in some states, certain spend-thrift trusts (I've heard, but have no experience with), the rate of withdrawal, as long as it at least meets the IRS required minimum rates, is entirely up to the beneficiary.

With the 5-year rule, the IRS minimum is that the account be fully withdrawn by the end of the 5th year beginning the year following the year of death. How much and when account withdrawals occur is entirely up to the beneficiary.

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