Roth IRA Beneficiary Distribution
If Dad has a Roth IRA, and he dies after Mom, leaving the Roth IRA to Son. How long can Son stretch Roth IRA out? If there is money left when Son dies, how long can Grandson stretch Roth IRA out?
If Dad has a Roth IRA, and he dies after Mom, leaving the Roth IRA to Son. How long can Son stretch Roth IRA out? If there is money left when Son dies, how long can Grandson stretch Roth IRA out?
Permalink Submitted by mk foss on Tue, 2010-09-14 17:09
The stretch out period for a Roth IRA is the same as that of a beneficary of a traditional IRA when the owner dies before his/her required beginning date. In this example, the son would take distributions over his life expectancy based on the SIngle Life Table found in the regulations and in Pub. 590. He would use his age in the year after Dad’s death, the divisor for future years would be based on that same factor but reduced by 1 each year. If son dies before the Roth has completely paid out, the grandson would take the remaining distributions that son did not take.
Example, Dad dies in 2010 when son is age 46. The factor for age 47 is 37.0. In 2011 son takes 1/37th of the balance at 12/31/10. In 2012 he takes 1/36th, then 1/35th etc. Assume that son dies in 2019 after taking his distribution that year. Grandson will take a distribution in 2020 of 1/29th of the balance on 12/31/19 – 1/28th the next year, etc etc