SECURE Act – Is there an RMD for Inherited IRAs?
With the SECURE Act requiring draw down of an inherited IRA over 10 years, is there a requirement for an annual RMD over the 10 years (similar to current inherited IRAs)? For an inherited Roth IRA would the correct strategy be to sit on it and withdraw the entirety and the end of the tenth year.
Permalink Submitted by Alan - IRA critic on Wed, 2019-12-18 14:56
No annual requirement. Of course, if the beneficiary waits to withdraw the entire balance in year 10, they may pay a high tax rate. Yes, for an inherited Roth there will be no tax, so best to wait as long as possible and let the inherited Roth generate tax free earnings over those 10 years.