The rules of withdrawal surrounding the Inherited IRA have been changed starting in 2020. If you are not a spouse or child of an inherited IRA, you only have one choice on how to withdrawal the money. You must take all of it out within 10 years from the date of inheritance. Before you had a couple of choices, one was to stretch it out based on your life expectancy, but not anymore.
The ‘Secure Act’ has changed the rules and there is one area that the change is dramatic. That is when an inherited IRA is in a trust and the trust spells out that the money is to be paid out over longer than 10 years. So what happens? You have to follow the trust instructions up to the 10 year limit and then you have to take all the reaming amount in the IRA all at one time and thus incur taxes for that withdrawal in that 10th year. The tax burden could be very heavy.
Check with your accountant and reread your trust. It is a good idea to have individuals inherit IRAs not a trust.