My parent had a Roth IRA with myself listed as a beneficiary. They passed away in 2015 so prior to Secure 2.0. The wrinkle is that I had no idea this account existed until this year. It being the 10th since they passed away, as I understand it, it must be fully liquidated.
It is not a huge amount of money, but it's also not pocket change and possibly will place me into a higher tax bracket if forced to fully liquidate.
Does anyone know or understand the rules? Does the 10 year rule apply to date of death(2015) or date of inheritance/control of asset(2025)? The inherited account was only created this year.
If I have to liquidate by 12/31/25 what is the most tax efficient way? It seems I cannot rollover to my own IRA, without liquidating it to cash and then rebuying, which obviously makes it taxable.
Any help is greatly appreciated!