Explaining Penalty Relief for Inherited Withdrawals

The Financial Answer with Nathan O’Bryant · May 9, 2024 · 16m

While the stretch IRA has been gone for a few years now, a new tweak in the rules has added some confusion. On today’s episode, we discuss what this may mean for inherited IRAs and look at a recent article from CNBC to break it down. Currently, there is a 10-year rule to withdraw from an inherited IRA account, but the IRS is allowing a penalty relief in 2024 to certain heirs considered “non-eligible designated beneficiaries” as they work to figure it out.

Here’s some of what we discuss in this episode:

What the IRS did in 2024 about inherited withdrawals.

What the tax implications could be in…