Roth IRA

Submitted by Danny Harlow on Thu, 2018-03-22 17:18

We have a client that three years ago inherited her spouse’s roth. She passed this year at the age of 70 1/2, Our understanding is the beneficiaries have to take a lump sum, five year payout or based distributions based on a bene’s age. Is this accurate? Thank you



Submitted by Alan - IRA critic on Thu, 2018-03-22 18:17

This is not correct. Additional info is needed to determine the status of the Roth inherited by the beneficiaries. Please advise the age of the decedent, preferably his DOB, and if the client took any steps to elect ownership of the inherited Roth or took any distributions from the Roth if she had it titled as inherited and not owned by her. Yes, this gets complex and also relates to determining if the Roth is qualified or not. I’ll assume the husband first contributed to the Roth before 2014, correct.

Submitted by Danny Harlow on Tue, 2018-05-01 16:53

We have a client that will turn 71 in November. Do they need to take two RMD’s this year?

Submitted by Alan - IRA critic on Tue, 2018-05-01 18:11

  • Is this question related to the prior posts about an inherited Roth IRA? 
  • If not, a taxpayer that owns a traditional IRA and reaches 70.5 this year has choices. They can delay the 2018 RMD until as late as 4/1/2019 in which case they would have to take two RMDs in 2019. Otherwise, they can take the 2018 RMD this year and the 2019 RMD next year. In no case would they be able to take 2 RMDs in 2018. 

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