Roth IRAs and the 10-Year Rule: Today’s Slott Report Mailbag

Thursday, December 31, 2020

By Sarah Brenner, JD
Director of Retirement Education
Follow Us on Twitter: @theslottreport

Question:

Can a retired person not working contribute to a Roth IRA?

Answer:

There are no age limits for Roth IRA contributions. This allows older people to contribute. However, the rules do require earned income. For example, income from a part time job would work. If you are married and your spouse has earned income, you can also make a spousal contribution to a Roth IRA based on your spouse’s earned income.

Question:

Regarding the 10-year requirement to empty inherited IRAs under the SECURE Act, is it 10 years from date of death or the end of the tenth year following the year of death

Answer:

The 10-year rule under the SECURE Act requires an inherited IRA to be emptied by December 31 of the tenth year following the year of death. It does not require the account to distributed by the tenth anniversary of the death. For example, if an IRA owner died on February 17, 2020, then the inherited IRA would need to be completely distributed by December 31, 2030.

 

 

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