Episode Overview

Podcast: Jill on Money
Host: Jill Schlesinger, CFP®, with producer Mark
Episode Date: February 2, 2026
Episode Title: Inherited IRA Opportunities?

Jill Schlesinger takes a listener call from David in Ohio, focusing on the financial and life-planning opportunities and challenges presented by an inherited IRA. The episode explores strategies for early retirement, drawing down inherited assets, tax considerations, and how lifestyle choices fit into David's vision for the next decade. The discussion delivers practical and emotionally resonant guidance for those considering similar transitions.

Key Discussion Points and Insights

1. Listener Background and Financial Snapshot

[05:22–07:14]

• David (48) and wife (47), both working, no children
• Combined income: $190k/year
• Retirement savings: David - $1.4M split between Traditional ($800k) and Roth 401(k) (balance in Roth); Wife - $59k in 401(k)
• Brokerage account: $380k (including part of inheritance)
• Inherited IRA: $330k (not included in above totals)
• Home: $30k left on mortgage; house worth $260–$270k
• No pension for wife; David receives small pension at 55 ($3,700/year)

Notable quote [06:21]:
Mark: "Struggling, struggling."
Jill: "I'm a millionaire. Struggling as a millionaire."

2. Inheritance Details and the "10-Year Rule"

[07:14–07:59]

• David's mother recently passed; inherited IRA of $330k.
• Required Minimum Distribution (RMD): After taking the remaining distribution for his mother last year, David now faces the "10-year rule" to fully draw down the inherited IRA.

Jill clarifies: [07:43–07:59]
Jill: “So this year's the first year. We're gonna have to take our own RMD over the next 10 years.”

3. Early Retirement Considerations

[08:05–10:49]

• David considering retiring at the end of the year at age 48 after 25 years at the same company; driven by stress and desire to pursue ignored interests.
  • Wife to continue working ($50k/year)
  • David plans to find part-time work ($20k–$30k/year)
  • Health insurance for both covered through wife
  • Spending plan: $60k–$65k/year until age 59.5
  • Transition to drawing from traditional 401(k) at 59.5; Roth assets and Social Security in later years
  • No kids, modest lifestyle

Notable quote [08:44]:
Jill: “What are you gonna do with yourself? You're so young.”
David: “It's getting more and more, you know, conglomerated...the stress is high...I'd rather spend time doing things that I have ignored for the past two decades.”

4. Inherited IRA Withdrawal Strategy and Tax Implications

[11:17–12:25]

• Jill emphasizes flexibility in inherited IRA withdrawals: don't have to make equal yearly withdrawals, just fully distributed within 10 years.
• If David retires, household income drops, possibly resulting in a lower tax bracket when drawing down inherited IRA—unique opportunity for tax-efficient withdrawals.
• Assets' expected growth and availability of brokerage funds provide additional buffer.

Notable quotes:
[11:27] Jill: “The 10 year rule doesn't have to be equal, right? It doesn't have to be equal amounts that come out of that over the next 10 years...Based on you, if you retire, what might be interesting is that you do drop down in tax bracket.”
[12:25] Jill to Mark: “I can't believe it, but I think it works.”

5. Validation and Encouragement from Jill and Mark

[12:25–12:40]

• Both Jill and Mark affirm that David’s plan is realistic due to their significant savings, continued income, and relatively low spending needs.
• Emphasis on not needing to match current income in retirement and the advantage of living modestly.

Notable quote [12:40]:
Mark: “It works because they have money saved even before the inheritance...the wife's going to keep working and Dave's going to do something.”

6. Personal Life and Plans for Retirement

[12:52–14:56]

• David and his wife are passionate about curling—they met at a curling event, belong to a curling club, and are attending the Winter Olympics in Cortina.
• Social and recreational engagement is a component of their retirement plan.

Notable quotes:
[13:06] Jill (amused): “You are not. We’re all curlers here. Yep.”
[13:30] David: “It’s a sport that's easy to get started in and try, but it's really difficult to master...it’s basically an upper body sprint when you’re sweeping.”

Notable Quotes and Memorable Moments

| Timestamp | Speaker | Quote | |-----------|---------|-------| | 06:21 | Jill/Mark | "I'm a millionaire. Struggling as a millionaire." | | 07:43 | Jill | “So this year's the first year. We're gonna have to take our own RMD over the next 10 years.” | | 08:44 | Jill | “What are you gonna do with yourself? You're so young.” | | 08:48 | David | “…The stress is high, and I want to get out of it. I'd rather spend time doing things that I have ignored for the past two decades.”| | 11:27 | Jill | "The 10 year rule doesn't have to be equal...just have to get out. The nice thing is...if you retire, what might be interesting is that you do drop down in tax bracket."| | 12:25 | Jill | “I can't believe it, but I think it works.” | | 12:40 | Mark | “It works because they have money saved even before the inheritance.” | | 13:06 | Jill | "You are not [going to the Winter Olympics for curling]. We’re all curlers here. Yep." | | 13:30 | David | “It's a sport that's easy to get started in and try, but it's really difficult to master...it's basically an upper body sprint when you're sweeping.” |

Important Segment Timestamps

• Listener Introduction/Financial Snapshot: 05:22–07:14
• Inherited IRA Explanation: 07:14–07:59
• Discussion of Early Retirement, Household Spending, and Income Strategy: 08:05–10:49
• Inherited IRA Withdrawal Planning & Tax Implications: 11:17–12:25
• Jill and Mark Validate David's Plan: 12:25–12:40
• Life Plans and Curling Enthusiasm: 12:52–14:56

Tone and Style

• Jill is direct, playful, and supportive—“Struggling as a millionaire” is both a joke and a gentle reality check.
• Mark offers pragmatic, good-natured validation.
• David is earnest, reflective, and practical about both his money and his hopes for life after corporate work.
• The conversation combines solid financial expertise with candid, disarming humor and attention to emotional factors.

Summary Takeaways

• Inherited IRA provides flexible, tax-savvy opportunities, especially if post-retirement income drops into a lower tax bracket.
• Early retirement is feasible with significant savings, reasonable spending, spousal support, and ongoing part-time income.
• Personal interests and community involvement (e.g., curling) are key for a fulfilling retirement.
• Listeners facing transition are encouraged to seek personalized financial advice, emphasizing that financial success is not about hitting magic numbers, but about realistic planning aligned with life goals.

If You Haven't Listened...

This episode is a must for anyone inheriting retirement accounts, contemplating early retirement, or curious about withdrawal strategies under IRS rules. Jill balances professional financial advice with real-world practicality and warmth, making a complex topic accessible and reassuring.

For more listener questions or to submit your own, visit jillonmoney.com and click the "Contact Us" button.