Beneficiary Roth IRA Clarification
I need clarification for Beneficiary Roth IRAs both Pre-Secure Act and Post-Secure Act.
- Pre-Secure NEDB Bene IRA. Not sure here – Is she required to do RMDs over the beneficiaries life expectancy or how is this handled?
- Post-Secure NEDB Bene IRAs. Owner died in 2022. It is my understanding that the NEDB’s are not required to take annual RMDs; however, the accounts would need to be fully distributed by 2032.
- Post-Secure NEDB Bene IRAs. Owner died in 2024 at age 47. Surviving spouse (age 47) is sole beneficiary. We created a Beneficiary Roth IRA for now due to her age. Need guidance here too.
Permalink Submitted by Alan - IRA critic on Mon, 2025-01-27 12:27
Pre Secure DB non spouse – yes, annual beneficiary LE RMDs are required.
Post Secure NEDB – no annual RMDs are due in year 1-9 of the 10 year rule.
Post Secure sole spousal beneficiary is an EDB, but no beneficiary RMDs are due until the year the deceased spouse would have reached 75. Beneficiary spouse can take distributions as needed with no early distribution penalty. Upon reaching 59.5, the spouse should assume ownership of the inherited IRA, and no RMDs will ever be due.
Permalink Submitted by Tracy Hawbaker on Mon, 2025-01-27 12:39
Thank you. To clarify in the last scenario, she would need to start taking distributions from her own Roth IRA at age 75?
Permalink Submitted by Alan - IRA critic on Mon, 2025-01-27 13:00
Good catch. After assuming ownership there would never be RMDs for the spouse. I edited the prior post to clarify.
Permalink Submitted by Tracy Hawbaker on Mon, 2025-01-27 13:02
Thank you.