Inherited Roth IRA
Sally inherited a Roth IRA from her mother last year. Let’s say Sally does take some distributions and dies 5 years later. Will the beneficiaries have 5 years to liquidate the account? Thank you
Sally inherited a Roth IRA from her mother last year. Let’s say Sally does take some distributions and dies 5 years later. Will the beneficiaries have 5 years to liquidate the account? Thank you
Permalink Submitted by Alan - IRA critic on Tue, 2021-07-06 20:53
Yes. Sally is likely subject to the 10 year rule if not disabled, and upon her death her beneficiaries must drain the inherited Roth by the end of that same period. So if Sally lives 5 years after inheriting, there are 5 years left after her death to drain the account. There are no situations where a 10 year rule for a non eligible designated beneficiary is replaced with an additional 10 year rule for the successor beneficiary.