Inherited IRA in spend down phase

[Thrif-t]

Hi all I have a question. Unfortunately, soon I will be inheriting part of an IRA from my 77 yr old mom. My mom's financial planner, whom I'm not crazy about, expects me to just roll it into something w/her so she can figure out my distributions I have to take every year. I have all my other investments with Vanguard and planned to roll it into a Beneficiary IRA with them. How hard will it be for me to figure out how much of a distribution I need to take every year. Do you think this is something a novice can do or is it dificult and I should leave it with my moms lady to figure out? Would Vanguard do it for me? Thanks for any and all advice. Oh and probably it'd be around 10k for the IRA.

[moneybags]

Sorry about your situation.

Vanguard will probably do it for you. If you want to know what you're required minimum distribution will be, you can google and find a chart. It is based on age and value of IRAs. If I didn't like the planner, I'd go ahead and move it.

[Thrif-t]

I think I will definetely move it. I didn't like how she tried to use scare tactics to keep it with her. That's why I'm taking the time now to educate myself on this type of IRA to see what all it entails. I also plan to talk to Vanguard about it but just thought i'd post on here first. So many smart people here

[kv968]

You can also take a lump sum payment. The taxes on the lump sum distribution will depend on whether or not the IRA has been set up for 5 years. If the IRA was set up within the past 5 years, the contributions that were put in will be tax-free, but the earnings will be taxed. You could however take the contributions and leave the earnings in there until the IRA reaches the 5 year mark and then withdrawl the earnings tax-free. Another option is to take distributions, which you could set up yourself. I'm pretty sure this is right but I'd check with Vanguard just to make sure and talk over some options with them.

[Thrif-t]

Originally Posted by kv968

You can also take a lump sum payment. The taxes on the lump sum distribution will depend on whether or not the IRA has been set up for 5 years. If the IRA was set up within the past 5 years, the contributions that were put in will be tax-free, but the earnings will be taxed. You could however take the contributions and leave the earnings in there until the IRA reaches the 5 year mark and then withdrawl the earnings tax-free. Another option is to take distributions, which you could set up yourself. I'm pretty sure this is right but I'd check with Vanguard just to make sure and talk over some options with them.

I'm sure the IRA has been in existence at least 20 years or more.

[boefixepa]

Vanguard is great, just call them up and talk to them and they will give you all your options. If you don't like or trust your mom's person, don't use her.

[Fern]

If you move it to a reputable fund company like Vanguard, they will most certainly help you with that calculation. I'm sore they can share the formula details so you understand how it's calculated.