Electing the 10 year rule for an inherited ROTH IRA

According to IRS publication 590-B ( on the top of the left side of page 10),  an eligible designated beneficiary  to a ROTH IRA (decedant passed in 2021) needs to take RMDs unless the EDB “elects” to follow the ten year rule.  Is there something that the person need to file with the IRS to show that they have elected the 10 year rule?  The actual wording is:  ” unless such beneficiaries elect to take distributions using the 10-year rule”.



For an inherited IRA or inherited Roth IRA, the agreement will typically provide that life expectancy is the default method (but perhaps not for qualified plans). Therefore, the beneficiary must make the election to opt out of EDB treatment and into the 10 year rule no later than the end of the year following the year of death. The election is irrevocable and made by notifying the Roth custodian.

It does not appear that a failure to make a timely election or take a LE RMD results in the 10 year rule applying. Most likely, the annual beneficiary RMD will just be late and subject to potential penalty but can probably be made up and a 5329 filed to request the penalty waiver as long as the IRS is granting these requests.

 

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