Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 22 OCTOBER 2008

Avoiding Penalties For Not Taking Distributions From Inherited IRAs

Duane Morris LLP
Duane Morris LLP
Contributor
Explore more from Duane Morris LLP

As we are all painfully aware, the stock market has experienced a significant downturn in the last year, and that decline has negatively impacted many individual retirement accounts, whether invested in mutual funds or otherwise.

United StatesTax
Duane Morris
Duane Morris
Author LinkedIn connections

Originally published September 2, 2008

As we are all painfully aware, the stock market has experienced a significant downturn in the last year, and that decline has negatively impacted many individual retirement accounts, whether invested in mutual funds or otherwise. While the shrinking values of IRAs are disconcerting enough, when they are compounded with penalties for failure to take minimum required distributions, or MRDs, a more dire situation emerges, particularly in the case of inherited IRAs, where beneficiaries are often not properly advised regarding IRA distribution options and requirements. While an article cannot cure the current stock market woes, it can provide guidance for avoiding penalties for failure to take MRDs from inherited IRAs.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

GENIUS Act Crypto Tax Guide 2025-2026: What US Investors, Businesses, And Taxpayers Need To Know About The New Stablecoin Law, Form 1099-DA, And Digital Asset Regulation

The United States cryptocurrency regulatory landscape has undergone its most dramatic transformation in history. The signing of the GENIUS Act into law on July 18, 2025 — the first comprehensive federal crypto statute ever enacted — marks a before-and-after moment for American digital asset law.
United StatesTax
Rotfleisch & Samulovitch P.C.
Rotfleisch & Samulovitch P.C.
Article

A 5% Wealth Tax? Preparing Clients For California's Billionaire Tax Act

California's proposed Billionaire Tax Act would impose a onetime 5% excise tax on individuals and trusts with assets exceeding $1 billion, creating unprecedented challenges for estate planners. The retroactive application and anti-abuse provisions raise critical questions about the treatment of grantor trusts, non-grantor trusts, and beneficiary interests that deviate significantly from established federal wealth transfer tax principles.
United StatesTax
Withers LLP
Withers LLP
Article

IRS Proposes New Racial Nondiscrimination Regulations For Tax-exempt Private Schools

The US Treasury and IRS have proposed regulations that would eliminate longstanding exceptions allowing tax-exempt private schools to maintain race-conscious admissions and scholarship policies. Following the Supreme Court's decision in Students for Fair Admissions v. Harvard, these rules would apply to all private educational institutions, including K-12 schools not directly affected by that ruling, and could result in loss of tax-exempt status for noncompliance.
United StatesTax
McDermott Will & Schulte
McDermott Will & Schulte
Article

Proposed IRS And Treasury Rules Tie Racial Nondiscrimination To Tax-Exempt Status For Private Schools And Universities

On September 3, 2026, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued proposed regulations under Section 501(c)(3) that could materially affect private education in the United States. The proposal would apply a broad nondiscrimination standard based on race, color and national or ethnic origin, with significant implications for private schools, colleges and universities seeking or maintaining tax-exempt status under Section 501(c)(3).
United StatesTax
Buchanan Ingersoll & Rooney
Buchanan Ingersoll & Rooney
Article

DHS Proposes $70,000 And $30,000 Fees For F-1 Optional Practical Training

The Department of Homeland Security has proposed a controversial new rule requiring SEVP-certified schools to pay substantial fees—$70,000 for a student's first Optional Practical Training recommendation and $30,000 for each subsequent OPT application, including STEM extensions. With only a 30-day comment period and potential annual costs reaching up to $16.5 billion across nearly 2,500 affected institutions, the proposed regulation is expected to face significant legal challenges if finalized.
United StatesImmigration
Duane Morris LLP
Duane Morris LLP
Article

SEC Proposes Rule Amendments To Expand Retail Access To Private Markets

The SEC has proposed sweeping amendments to expand retail investor access to private market strategies, including changes to performance-based compensation rules for registered investment advisers and modernization of the interval fund framework. The proposals also explore new credential-based pathways for individuals to qualify as accredited investors, potentially opening private offerings to a broader pool of eligible participants.
United StatesFinance and Banking
Duane Morris LLP
Duane Morris LLP
Video

The Class Action Weekly Wire – Episode 168: Maryland Federal Court Dismisses ‘Drip Pricing’ Class Action Against Ticket Reseller (Video)

A federal court in Maryland recently ruled on a consumer protection class action against Vivid Seats involving allegations of "drip pricing" - the practice of advertising ticket prices without mandatory fees that are revealed later in checkout. While the court found the company's arbitration agreement unenforceable due to its unilateral modification clause, it ultimately dismissed the lawsuit for failure to adequately allege reliance or injury under Maryland's Consumer Protection Act.
United StatesConsumer Protection
Duane Morris LLP
Duane Morris LLP
Article

Anwalt in Vietnam Dr. Oliver Massmann VIETNAMS RECHENZENTREN – WAS SIE VOR INVESTITION, BAU UND BETRIEB UNBEDINGT WISSEN MÜSSEN

Vietnam entwickelt sich rasch zu einem bedeutenden Rechenzentrumsmarkt in Südostasien, getrieben durch KI, Cloud Computing und digitales Wachstum. Doch erfolgreiche Großinvestitionen erfordern weit mehr als Immobilienentwicklung – sie vereinen komplexe rechtliche, technische und regulatorische Herausforderungen. Besonders die Stromversorgung könnte zum entscheidenden Erfolgsfaktor werden.
VietnamCorporate/Commercial Law
Duane Morris LLP
Duane Morris LLP