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10 Years to distribute an IRA?

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Question: 
Does a designated beneficiary have 10 years to distribute the entire balance of the IRA?
Answer: 

Yes and No. If the owner of the IRA was in payout, the beneficiary has to take the last RMD and then take payments over his or her life expectancy but still have the entire balance cleaned out in 10 years after the owner’s death. If owner not in payout when died, then anytime in the 10-year period the account can be cleaned out.

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First published on 08/06/2023

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