Inherited Roth IRA Stretch
Hello. Client, Brother, and Daughter inheriting deceased Mother’s Roth IRA. Mom passed in 2019. What’s the rules for stretching out the Roth IRA? This is my first. Thanks.
Hello. Client, Brother, and Daughter inheriting deceased Mother’s Roth IRA. Mom passed in 2019. What’s the rules for stretching out the Roth IRA? This is my first. Thanks.
Permalink Submitted by Alan - IRA critic on Mon, 2020-01-06 17:07
Since the Roth owner passed in 2019, these beneficiaries can take inherited Roth IRA RMDs over their life expectancy. They need to create separate inherited Roth IRAs by 12/31/2020 for each to use their own life expectancy instead of the age of the oldest. As long as Mother’s first Roth contribution was prior to 2016, the inherited Roth IRA is qualified and all distributions are tax free.