08/06/2026
Inherited an IRA? The SECURE Act’s 10-year rule may be more complicated than it sounds. 🚀
For many beneficiaries, the account must be fully distributed by December 31 of the 10th year after the original owner’s death. But depending on the owner’s age, required beginning date, and your beneficiary status, annual required minimum distributions (RMDs) may also apply during that 10-year period.
That creates a serious tax-planning challenge:
• Taking too little may trigger an excise tax of 25%: and potentially up to 50% if the mistake is not corrected.
• Taking too much in one year could push you into a higher tax bracket.
• Waiting until Year 10 may create a large, concentrated tax bill.
• Beneficiary designations, trusts, and estate documents can change the outcome.
Your inheritance should strengthen your family’s future: not become an avoidable tax burden.
At Powell Wealth Strategists, we help families navigate generational wealth transfers with a personalized approach rooted in our 5F’s: especially protecting Family legacy. With trusted estate preservation attorneys and comprehensive planning, we help you understand your options and coordinate the next steps.
Don’t wait until a distribution deadline: or a tax notice: to ask questions. Schedule a conversation with Anethia Powell at www.calendly.com/anethiapowell
Educational information only; consult your tax and legal professionals regarding your specific situation.
