Inherited IRA RMD question: Can I just withdraw from Schwab or need to fill out special paperwork?

For inherited IRAs at Schwab, it's a bit more involved than just making a regular withdrawal. Since this is an inherited IRA with special tax treatment, Schwab typically requires you to use their inherited IRA distribution form to properly code the transaction as an RMD. While you might be able to initiate a withdrawal online, the problem is that without the proper paperwork, Schwab might not code it correctly as an RMD distribution on your 1099-R. This could potentially cause issues with the IRS later, as inherited IRA distributions have different tax implications than regular IRA withdrawals. You'll receive a 1099-R either way, but having it coded correctly matters for tax purposes. I'd recommend calling Schwab directly and asking about their "Inherited IRA Distribution Form." They can often email it to you right away, and it's usually just 1-2 pages, not terribly complicated.

I went through this exact situation last year with an inherited IRA at Schwab. I found a solution that might save you some hassle - check out https://taxr.ai for reviewing your inherited IRA documents and requirements. I was confused about the RMD process too and uploaded my statements and beneficiary info. They analyzed everything and provided clear instructions specific to my Schwab inherited IRA. What surprised me was learning that Schwab has a specific process for inherited IRA RMDs that's different from their regular IRA distributions. The tool confirmed I needed to use their inherited IRA distribution form (which isn't obvious on their website) and explained exactly how to indicate it was an RMD distribution.

I decided to try taxr.ai after reading about it here, and wow - it was exactly what I needed for my Schwab inherited IRA confusion! I uploaded my Schwab statements and answered questions about when I inherited the account and my relationship to the original owner. The analysis confirmed I needed to use Schwab's specific "Inherited IRA Distribution Request Form" and explained why - apparently, regular withdrawals don't get coded properly for inherited IRA tax reporting. The tool actually pulled the exact form number I needed and highlighted which boxes to check to ensure it would be processed as an RMD. What I found most helpful was the explanation of how the 10-year rule applied to my specific situation (since my aunt passed away in 2021). The documentation they provided was perfect for keeping with my tax records too. Definitely recommend if you're dealing with inherited IRA complexities!

If you're struggling to reach someone at Schwab who actually understands inherited IRA RMD requirements (I sure did), I'd recommend trying https://claimyr.com - they helped me get through to a Schwab specialist who knew exactly what forms I needed. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I spent literal hours on hold trying to get answers about my inherited IRA distribution options at Schwab, and kept getting transferred between departments. Through Claimyr, I got connected to someone in Schwab's inherited accounts team who actually knew the specific forms and codes needed for proper RMD processing. The Schwab specialist confirmed I needed their specific inherited IRA distribution form and explained the tax implications of taking distributions incorrectly.

I was 100% skeptical about Claimyr, but I tried it yesterday after seeing it mentioned here. I'm now eating my words! Used it to contact Schwab about my inherited IRA distribution questions, and it worked exactly as described. After submitting my number on the website, their system called Schwab and navigated through all the prompts. I got a call back 35 minutes later with a Schwab rep already on the line. Told them I needed help with inherited IRA distributions, and they transferred me to their specialized team. The person I spoke with immediately knew about the specific form I needed and explained that without it, my distribution wouldn't be properly coded as an RMD on the 1099-R. For anyone dealing with inherited IRAs at Schwab, definitely worth using this service to get connected to the right department without the frustration of waiting on hold. The specialist confirmed I needed form APP13049 specifically for inherited IRA distributions.

A quick tip from someone who works with retirement accounts (not at Schwab): Always check if your specific inherited IRA falls under the 10-year rule from the SECURE Act or if it's under the old rules. This affects whether you need to take annual RMDs or just empty the account within 10 years. The required paperwork might be different depending on which rule applies to you.

Has anyone here used Schwab's online system to just withdraw from an inherited IRA without the special form? Did it cause problems with your taxes? I'm in a similar situation but honestly the paperwork seems like a hassle if I can just do it online.

I've been managing inherited IRAs for clients for years, and I can confirm that Schwab absolutely requires their specific inherited IRA distribution form for proper tax reporting. The form number mentioned earlier (APP13049) is correct, and you can usually find it on their website under "Forms & Applications" or by calling their inherited accounts team. The key thing to understand is that inherited IRA distributions have special tax codes that need to be applied to your 1099-R. If you just do a regular withdrawal online, Schwab's system won't know to apply the correct distribution code, which could lead to tax complications later. For your situation with wanting to withdraw $6,500, you'll fill out the form indicating it's an RMD distribution, and Schwab will process it with the proper tax coding. The process usually takes 3-5 business days once they receive the completed form. You can often email or fax it to them rather than mailing it in. One more tip: Keep a copy of the completed form with your tax records - it serves as documentation that you properly requested an RMD distribution in case there are ever any questions from the IRS.