What To Do with IRA and Mutual Fund Benificiary Money Left To Me.

[gypsytraveler]

My mother passed away in Iowa on the first of April of this year. She had some IRA money in two differant accounts that I was named as benificiary.....One in the amt of approx $40,000 and the other approx $37,000. They have been switched over to my name as a benificiary account. I am trying to decide how to handle the money and am totally confused. I want to do what ever is the best without the most tax penalty. I was told that I can not just roll it over.......as the only way you can do that as a benificiary is as a spouse. Was told that I could draw it out over a five yr time. Now today, one of the banks called me and told me that they had rolled the money over in to my name as a benificiary acct and that I would have to draw at least what my mother was a mo off of it or more, not less. I asked if by rolling it over into my name if there was a tax i would have to pay on that whole amt.....I am 55. I DON"T know what do do with this money. We are buying a house and i had planned to use the insurance money for the downpayment on it and then take the money i draw off of the one acct mo, to put on the principal of the house each mo and then to roll the money i could draw mo off the other acct into another ira or something.......But each time i talk to someone about this the more confused i become. I don't want to loose it all to taxes. My father suggested i try to put both accts into one place, but I don't think i can do that without withdrawing a lump sum and then the taxes would kill me wouldn't they?
Any advice you could give me as to where to go for advice or what to do would be most appreciated....I am totally in the dark on this stuff, as is my husband. No experiance with except for a short time with my husbands 401k plan at his job.

Thank you.

 

[bigun]

Call the Trust Dept. of a large bank and ask to make an appointment with their retirement plans specialist. They field questions like that every day. Good luck!