RMD from a Roth IRA that is not liquid

Submitted by Dave O'Riley on Fri, 2018-08-03 13:14

If I have an inherited Roth IRA that is not liquid (Private Placement Shares) can I take the RMD from a traditional IRA I have also inherited from the same person that is in the form of cash and stock and is being withdrawn over the 5 year rule.?



Submitted by David Mertz on Fri, 2018-08-03 15:34

  • No.  The RMD for the inherited Roth IRA must come from the inherited Roth IRA (or another Roth IRA inherited from the same deceased individual).  If the investment is illiquid, it may be possible to distribute some shares in-kind to satisfy the RMD.
  • With regard to the 5-year rule, the 5-year rule is only an option for distributions from the inherited traditional IRA if the owner died before the owner’s Required Beginning Date for RMDs.  The 5-year rule *is* and option for the inherited Roth IRA since Roth IRAs to not have a Required Beginning Date for RMDs to the owner.

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