[shopaholic60]

I have a beneficiary IRA. I'm not yet 59-1/2 but my late husband would have been. Therefore, am I required to make a withdrawal from this IRA on a yearly basis?

[ebaines]

No - you are not required to take any withdrawals until you reach age 70-1/2. As a spousal beneficiary you have the option of assuming his IRA and then you have the same options as any IRA owner (such as taking distribution any time you want after you reach age 59-1/2 without penalty, or waiting until age 70-1/2 before taking any distributions at all). This option is available only to spousal beneficiaries, and only if you are the sole beneficiary. But if you simply leave the account alone under the "5 year rule" you must completely drain the account, or run the risk of losing up to 50% in penalties. Clearly that's not a good option. Talk to the IRA custiodian to see what your options are, and ask questions specifically about transferring his account into your name.