Withdraw from an Inherited IRA or Retirement Plan Using the Life Expectancy Method
The life expectancy method is a method of taking distributions from an inherited IRA or employer-sponsored retirement plan account. As the name suggests, it allows you to take post-death distributions based on your life expectancy. Under this method, you must receive a certain minimum amount each year. You can always take larger distributions than required, but if you withdraw less than required in any year, a 50 percent federal penalty tax will apply to the undistributed required amount. The annual required distributions are calculated to dispose of the entire balance in the inherited IRA or plan over your remaining life expectancy. The applicable life expectancy is determined according to IRS life expectancy tables.