RMD for inherited Roth IRA
Does an inherited Roth IRA *by a non-spouse beneficiary for death after 2019) have an annual RMD in addition to the 100% 10-year payout? Since the owner had no RMD it would seem the beneficiaries would not either.
The IRS website indicates that an inherited Roth IRA is treated the same as a traditional inherited IRA. Does this mean annual RMDs kick in during the 10 years post-death after their RBD date?
Permalink Submitted by Alan - IRA critic on Thu, 2023-03-02 22:38
Since there is no RBD for a Roth IRA, all Roth owners pass prior to RBD. The non spouse beneficiary, if subject to the 10 year rule does not have to take annual RMDs in years 1-9. If the non spouse beneficiary is an EDB however, life expectancy RMDs must start in the year after death.
Permalink Submitted by Dennis D. Duffy on Thu, 2023-03-02 23:25
I agree but the IRS website says inherited Roth IRA’s are treated like a traditional IRA. WHat does this mean? Just the 10 year payout?
Permalink Submitted by Alan - IRA critic on Thu, 2023-03-02 23:58
They are treated the same, except that a Roth owner’s death is always prior to RBD.When a traditional owner passes prior to RBD, there are no annual RMDs within the 10 year rule, same as for Roth. But a traditional IRA owner could pass after RBD and annual RMDs would then be required. Therefore, once you determine if the owner passed prior to or after RBD, the beneficiary RMD rules are the same.