Inherited, Inherited Roth IRA Rules
I am looking for clarification on a Roth IRA that was inherited pre-SECURE act and subject to a lifetime RMD schedule then inherited again post-SECURE act and now subject to the ten-year rule.
Is it the same as the inherited traditional IRA rules – once you start RMDs, you cannot stop RMDs? E.g. An inherited Roth IRA is subject to a lifetime distribution schedule based on Beneficiary 1’s life expectancy and Beneficiary 1 passes, leaving the Roth IRA to Beneficiary 2. Will Beneficiary 2 need to continue taking RMDs based on Beneficiary 1’s life expectancy? (And the account has to be emptied by 12/31 following the 10th anniversary of Beneficiary 1’s passing).
Thank you to anyone who can offer insight,
~A
Permalink Submitted by Alan - IRA critic on Tue, 2025-01-14 17:13
Yes, the non spouse beneficiary RMD rules are the same for TIRAs and Roth IRAs. In both cases the successor beneficiary must continue the RMD schedule of the deceased primary beneficiary, and if there is still a balance in year 10, a total distribution in that year is required under the 10 year rule.
As such, the age and type of the successor beneficiary is irrelevant. And if the primary beneficiary did not complete their year of death RMD before passing, the successor beneficiary must complete it.
Permalink Submitted by Arminta Stacy McKelvey on Wed, 2025-01-15 11:39
Thank you, Alan!