The Right Way to Lower Your Tax Bill on an Inherited IRA

Time.com

My dad has a traditional IRA with non-deductible, after-tax contributions. He has to figure out the taxable and non-taxable portion of the distribution every time he withdraws money. As the beneficiary, do I need to do the same thing when I take distributions? Yes, you will have to do the same thing your father does or you’ll end up paying more taxes than necessary when you take the money out, says Jeffrey Levine, a CPA and IRA technical consultant at IRAHelp.com.