Secure Act re: real estate
Given passage of the Secure Act and the 10 year requirement for distribution to non-spouse, how is this implemented when there is real-estate in a inherited Roth IRA?
Given passage of the Secure Act and the 10 year requirement for distribution to non-spouse, how is this implemented when there is real-estate in a inherited Roth IRA?
Permalink Submitted by Alan - IRA critic on Tue, 2019-12-24 22:44
Typically, since the Roth distributions are non taxable and always non taxable at least 5 years after the death of the owner, the beneficiary would wait until the end of the 10 year period to make distributions. At that time they would have to distribute the property out of the Roth IRA, and hold it individually. At least with no annual RMDs now, there is a less urgent need for appraisals, but the custodian must still report the year end value to the beneficiary and the IRS and enter Code D in box 15b.