Inherited IRA

[momof3]

Client inherited an IRA when her mother died in 2002. Got 1 distribution in 2003 and nothing since. What do we do now? Do I take the 2004-2007 distributions out this year and pay the penalty on the 2004,2005 and 2006 distributions? I also read I can apply for an abatement on the 50% penalty.

Or, does she have to take it all out now in year 5 because she didn't take them annually?

Just want to make sure that I am understanding the rules correctly.

Thanks in advance

[NECPA in NEBRASKA]

I just researched this for two children that inherited IRA's from their grandmother. They took distributions in the first year and then nothing. They will have to take the remainder in year 5. If you find anything different, please post it here. I hadn't thought about trying to take the other distributions and paying the penalty. I'm not sure if it will work. I didn't see anything in the rules about a beneficiary trying to do that.

[kcjenkins]

I don't see how you could do that, since they did not actually take them out in those years. The only option now is to take it all in the fifth year.