Spouse Inherits ROTH IRA < 5 Years Old
The ROTH IRA was the first ROTH for the owner, started in September 2009.
The surviving spouse has no IRA.
The surviving spouse would like to claim the ROTH IRA as their own IRA.
The surviving spouse is under age 59 1/2, and does not need any income from the IRA.
Once the survivor has the ROTH IRA as their own, How are the 5 years of ownership determined?
– Counted from 2009 when the deceased made their first Contribution?
– Counted from the time survivor names the ROTH IRA as their own?
Permalink Submitted by Alan Spross on Sat, 2012-07-07 18:18
Counted from 2009. Therefore the surviving spouse that rolls this over will have a totally qualified Roth IRA as of 1/1/2014.
Until then, the usual ordering rules apply, meaning any earnings would come out last. Amounts other than earnings are distributed tax and penalty free.