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Can I take out as much as I want from an inherited IRA?

By Karin Price Mueller | for

Q. Is there any restriction on the amount that can be withdrawn from an inherited Roth IRA. Can the new owner take more than the required minimum, for example, to make a down payment on a house?

— Beneficiary

A. The rules for taking money from inherited IRAs have changed in recent years.

Most non-spouse beneficiaries now have to contend with the 10-year rule for minimum distributions.

Unless you are a minor child, a disabled individual or a chronically ill individual, you must take all the funds out of the Roth IRA by Dec. 31 of the year containing the tenth anniversary of the owner’s death, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.

But you have other options.

“If you inherited a Roth IRA, you do not have any minimum distribution requirements for the first 10 years,” he said. “So, you can withdraw 100% of the inherited IRA at any time within the 10-year period.”

Keep in mind that while no income taxes are due on Roth IRA withdrawals, if you’re dealing with a traditional IRA, taxes would be owed in the year the withdrawals are taken — which could be a big nut if you take out a large sum of money.

Email your questions to

Karin Price Mueller writes the Bamboozled column for NJ Advance Media and is the founder of Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook. Sign up for’s weekly e-newsletter.


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