I’ll try to break this down as simple as possible.
My mom passed away a couple years ago and I have $21k left in the Inherited IRA to take out. I’m on year 3 out of the 10 years rule they have for withdrawing everything. I’ve been maxing my Roth IRA with it to make sure it’s reinvested.
My question is:
1. I have 3 years to finish it off in my Roth IRA (@ $7,000 per year) before I run the account dry and could keep maxing that out.
2. My second option is to withdraw it completely and pretty much max out the Traditional 401k for the year through my employer (.95% admin fee or something annually) and pay my bills with it which would liquidate it into investments in this year.
On another note, my Roth IRA and the inherited Ira are both invested in FXAIX through fidelity because my thought process is whether it goes up or down in value it’ll still translate to the same amount of shares when I sell from the inherited and re-buy in my Roth IRA.
What would you guys do? Hopefully I explained this correctly.