beneficiary Roth ira

Can a Roth be stretched over multiple generations as a traditional IRA can? e.g. father dies and leaves Roth to son, son dies leaves Roth to his son, he dies and so on.



It is my understanding that it can be stretched.  However, the son’s age the year after he inherits it from his father (the original owner) would determine the factor for all succeeding inheritors however many.  That factor is reduced by one each year after the first distribution by all succeeding beneficiaries.   Tom D.



Also, be aware that Obama’s budget for next year will include subjecting Roth IRAs to RMDs and also invoking the 5 year rule for non spouse beneficiary distributions. The first proposal likely has no chance as if would be a horrific bait and switch following the 2010 conversion incentives, but the Supreme Court has already ruled that a non spouse inherited IRA does not constitute retirement funds for the beneficiary. Therefore, the 5 year rule provision has a relatively good chance of passing at some point. It would apply to both TIRA and Roth IRAs inherited by a non spouse.



Thanks.



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