Inherited Roth IRA

Submitted by Jason Hochstadt on Tue, 2017-09-12 21:02

Hello,

Client’s father recently passed away w/ a Trad. IRA and Roth IRA. Left each 50/50 to client and his sibling. We confirmed w/ TDAI that father took his 2017 RMD from his Trad. IRA.

I just want to confirm that Client will take his 1st RMD from BOTH the Inherited Trad. IRA AND Inherited Roth IRA by 12/31/2018 (with no RMD being required by Client in 2017 since the 1st RMD by a beneficiary would need to be taken by Dec. 31st of the year following death).

Thank you.

Jason



Submitted by Jason Hochstadt on Tue, 2017-09-12 21:03

Of note, we also confirmed with TDAI that the father’s Roth IRA had been in place since at least 2007 – so all RMDs from Client’s Inh. Roth IRA should be tax-free.  Thanks.

Submitted by Alan - IRA critic on Tue, 2017-09-12 23:50

Yes, you are correct on both counts. The separate inherited IRA accounts only need to be estabished by 12/31/2018 for each beneficiary to use their own single life expectancy for their 2018 inherited IRAs RMDs.

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