Inherited Roth IRA
Inherited Roth IRA Annuity. I want to keep the inherited annuity in my name as inherited. Can I leave for 10 years and then cash it in the 10th year? Or yearly, I have to take minimum distribution over the 10 year period? Advisors want me to cash the Roth in and reinvest in stock market.
Permalink Submitted by Alan - IRA critic on Thu, 2021-10-14 01:07
You are subject to the 10 year rule. There is no need to take any distributions until the end of the 10th year, and since the Roth will be qualified and tax free, waiting until the last year will not cause a taxable income problem. That said, if the expenses and fees for the annuity are unattractive, there could be investment reasons to have the inherited annuity directly transferred to a non annuity inherited IRA still under the 10 year rule. You could then invest in what you want and still not have any taxes due since the inherited Roth would be intact. Any gains will be tax free. Of course, the insurance company may not cooperate with the transfer request.