Non-Spouse Beneficiaries and Inherited IRAs: Today’s Slott Report Mailbag

Thursday, February 06, 2025

By Andy Ives, CFP®, AIF®
IRA Analyst

QUESTION:

Am I correct that a non-spouse Roth IRA beneficiary does NOT have a yearly required minimum distribution (RMD) over the 10-year period?

Ken

ANSWER:

Ken,

You are correct. Non-spouse beneficiaries of Roth IRAs that are subject to the 10-year rule do not have to take RMDs in years 1 – 9. The only requirement is that the inherited Roth IRA be emptied by the end of the tenth year. The reason for no RMDs within the 10-year period is that, since Roth IRA owners never have to take RMDs during their lifetime, all Roth IRA owners are deemed to die prior to the required beginning date (“RBD,” when RMDs are “turned on”). This is true no matter how old the Roth IRA owner is at death. As such, death before the RBD means no RMDs within the 10-year period.

QUESTION:

Can inherited IRAs be converted to Roth IRAs?

Michael

ANSWER:

Michael,

No, inherited IRAs cannot be converted to an inherited Roth IRA or to a person’s own Roth IRA. Inherited Roth IRAs must stay as inherited accounts. There is an anomaly in the rules for inherited 401(k) plans to be converted to inherited Roth IRAs, but again, that is only applicable to some inherited plan accounts.

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