Inherited ROTH IRA Inherited by My Spouse (Sole Primary Beneficiary of Roth $s)
Inherited ROTH IRA (Spouse as Sole Beneficiary) – Like the original Owner (Me), Is An Inherited IRA (ROTH $s Inherited By Spouse/Primary-Sole Beneficiary EXEMPT from RMDs (like Original Owner) – as Well as Maintaining the TAX-Free Status?
Permalink Submitted by Alan - IRA critic on Mon, 2018-07-16 23:12
The inherited Roth is exempt from RMDs only if the surviving spouse elects to assume ownership of the Roth. For distribution purposes if ownership is elected, the 5 year holding period is the longest of that of the original owner or their own Roth if they also have their own. The 5 year holding period must be completed and surviving spouse must also be 59.5 for owned Roths to be qualified and tax free. If the inherited Roth is maintained as inherited it will be subject to RMDs but if any earnings are distributed they would be penalty free to the surviving spouse regardless of age. The decision whether to elect ownership right away or wait until 59.5 can be important.