Roth IRA inherited by beneficiary pre-SECURE ACT. That Beneficiary names their own beneficiaries and passes post-SECURE ACT
Client has an inherited Roth IRA from a decedant who passed in 2010. They are taking stretch RMDs. If the client were to pass this year, her children would inherit it. Which method should they use to take RMDs? Does the answer change if the spouse inherits instead of the kids?
Permalink Submitted by Alan - IRA critic on Tue, 2025-01-28 12:48
The children will have to continue the RMD schedule of the client, reducing the divisor by 1.0 each year, and the 10 year rule will kick in as well. The inherited Roth may or may not last to the 10th year.
This same rule applies if the spouse of the client inherits. The age and relationship of a successor beneficiary is therefore irrelevant.
I assume that the client was not the spouse of the original Roth IRA owner.