One of my clients, a single woman in her early 50s, inherited an IRA of $900,000. She earns about $200,000 a year before her bonus, which puts her firmly in the 24% federal tax bracket. She didn't need the money right away, and with 10 years to empty the account, there was no obvious rush.

But if she simply took out about $90,000 a year, most of every withdrawal would be taxed at 32% or 35%.

The 10-year rule isn't always as simple as it sounds, either. Depending on when the original owner died, you may have to take money out every year. And even if you follow the minimum requirements perfectly, waiting too long to take larger withdrawals could leave you with a much bigger tax bill toward the end of the 10-year period.

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