Roth IRA RMD for Eligible Designated Bene
Brother/Decedent – 12/11/1959
Client/EDB – 12/20/1961
Our client inherited (After 2020) IRA and Roth IRA from his brother (client is 2 years younger). As an EDB, is he required to take RMD’s from his Roth IRA? We know that he can stretch his Bene IRA RMDs over his life, but conflicting findings on the Roth IRA.
Thank you!
Permalink Submitted by Alan - IRA critic on Fri, 2024-07-19 09:56
Yes, he must take beneficiary RMDs from the inherited Roth based on his single life expectancy Table I.
However, he also has the option to opt out of EDB treatment which would subject him to the 10 year rule, but with no annual RMDs in years 1-9. This is typically not a beneficial option barring a special situation and will shorten the distribution period for his successor beneficiary to client’s 10th year.
Permalink Submitted by Ryan Kenney on Fri, 2024-07-19 14:18
Thank you!