Permalink Submitted by Alan - IRA critic on Wed, 2019-04-03 19:48
An estate beneficiary of a Roth IRA triggers the 5 year rule regardless of the age of the decedent at death. In most cases distributions will be tax free unless they are accelerated before the Roth is qualified in cases where the decedent first opened the Roth within the last 5 years. The executor could still assign the inherited Roth to the estate beneficiaries who could then manage their own distribution pattern to eliminate taxes, and the estate could close. However, the Roth will have to be drained within 5 years max.
Permalink Submitted by Alan - IRA critic on Wed, 2019-04-03 19:48
An estate beneficiary of a Roth IRA triggers the 5 year rule regardless of the age of the decedent at death. In most cases distributions will be tax free unless they are accelerated before the Roth is qualified in cases where the decedent first opened the Roth within the last 5 years. The executor could still assign the inherited Roth to the estate beneficiaries who could then manage their own distribution pattern to eliminate taxes, and the estate could close. However, the Roth will have to be drained within 5 years max.