I Recently Inherited an IRA. Can I Cash It Out?

If you recently inherited an IRA, you probably don’t want to just cash it out. There are tax consequences associated with any time money comes out of an IRA. So cashing it out would potentially create a huge tax liability for yourself.

A better option would be to pull the funds out of the IRA over the course of five years or potentially even implementing a stretch distribution. That will allow you to minimize the tax consequences each year from those distributions.

Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor serving the greater Sacramento area with an office in Roseville, CA. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country's leading professional association of fee-only financial advisors.