Inherited Roth IRA by a Surviving Spouse
My father passed away 3 years ago in October 2011 and my mother inherited his ROTH IRA. It is titled in her name as “inherited Roth IRA as bene of my father”. The insurance company sends a form 5498 each year but box 11 is never checked indicating a yearly RMD is required and the account is listed now under her SSN.
My question is she required to take a distribution, she has not ever taken one since my fathers death.
Permalink Submitted by Alan - IRA critic on Thu, 2014-11-13 03:22
What were both their ages at the end of 2011?
Permalink Submitted by Jordan Ellis on Thu, 2014-11-13 03:49
Dad was 88 and Mom was 81 at the end of 2011.
Permalink Submitted by Alan - IRA critic on Thu, 2014-11-13 04:25
OK. Since she maintained it in inherited form, her RMDs needed to start in 2012. However, this works out well because there is a default rule stating that if a surviving spouse fails to take an RMD as a sole beneficiary, she is then deemed to become the owner of the IRA. Since this is a Roth IRA, there are no RMDs for owners. That might explain the 5498. But she should also have the account re titled to show her ownership and should name her own beneficiaries. This change to ownership will also allow her beneficiary to get a new stretch and that would not have happened had she passed when the account was maintained as inherited. So this will work out OK despite the fact that she should have put the Roth in her own name right after inheriting it.
Permalink Submitted by Jordan Ellis on Fri, 2014-11-14 05:42
Thanks so much for this information.