I Inherited a $400,000 IRA. Not Following the 10-Year Rule Could Cost Me Over $120,000 in Taxes.

A $400,000 inherited IRA can become much more expensive if you get the withdrawal timing wrong. Many non-spouse beneficiaries must empty the account within 10 years, and some also have annual RMDs. Delaying distributions could concentrate more taxable income into later years and potentially push more of your money into higher tax brackets.