RMD on and Inherited Roth…also Withdrawals above RMD
Clients daughter is 15 years old and inherits Grandpas Roth IRA which meets all criteria to be a Roth…………Are any withdrawals or RMDs taken by the child taxable to the child?….Looking for any help ………..I think I know answer…………need a confirm.
Thank you ………… Michael[/b]
Permalink Submitted by Alan Spross on Sat, 2008-03-08 01:19
Right. Even if Grandpa passed before the 5 years needed for his Roth to become qualified, if the child takes only the small RMDs, they will not tap into the earnings until the 5 years is reached in total. When you indicated all criteria for a Roth have been met, you probably meant that the Roth was already qualified. In that case even a total distribution to the child would be tax free.