They got some of the particulars of the inherited IRA wrong. There are two options: * take at least the required minimum distribution starting in the tax year

They got some of the particulars of the inherited IRA wrong. There are two options: * take at least the required minimum distribution starting in the tax year following the transfer, or * draw down the entire account within 5 years This applies to any inherited Ira that is not from your spouse, even if you are married. I.e., my inherited Ira (I'm married) is treated no differently from my sister's (she's not). Distributions from inherited iras are taxed like ordinary income, no matter when they happen or by how much you take, unless you're unlucky enough to have not done your red, in which case there's a crazy penalty.