My kids, 11 and 16, inherited an IRA from their grandfather. Now, we have 10 years to deplete the account. My children do not work and their only income is this unearned income. My wife and I file married/jointly and the kids are our dependants. I assume my kids need to file separate tax returns? Also, how can we minimize the tax burden on them as we begin to deplete the accounts? Is there a "magic" number we should look for? Any help or strategies would be appreciated.
Posted by zakk_7782