the passing of a Roth IRA upon death
I presently have a Roth IRA. Upon my death I intend passing this account to my wife. She can incorporate this Roth IRA into her existing Roth IRA and never make a withdrawal throughout her life. Upon her death, she would then pass her entire Roth IRA to my son.
If my understanding is correct, he can then withdraw any amount in the account tax free but must take RMDs that would be tax free to be determined by his age.
Are all of the above facts correct?
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Permalink Submitted by tomd37 on Thu, 2011-08-25 17:48
That is my understanding also. But you want to make sure your wife immediately changes the beneficiary on all her accounts (including the ones she gets from you) if you pass first. That is something that is sometimes overlooked and can cause a lot of problems if not handled in a timely manner.
Tom D.