Inherited Roth IRA

Submitted by alberto vega on Thu, 2021-08-05 16:24

Single person 76 yrs old in 2021 has several IRA’ s both conventional and Roth. The Roth values are $40,000 at 12/31/2020
She inherited 2 Roth IRA’s in 2016 from a friend that died in 2016, that were valued at $ 25,000 total as of 12/31/20. The friend had the Roth IRA’s for at least 5 years before 2016
1. What will be the factor and which table to use in 2021 to take RMD for the Roth IRA’s she inherited from her friend?
2. Does that factor for the inherited Roth IRA’s diminishes by 1.0 every year.
3. Or there is no RMD by this single person to take from her dead friends’ Roth IRA



Submitted by Alan - IRA critic on Thu, 2021-08-05 16:44

A  non spouse inherited Roth IRA RMD is the same as if the Roth was an inherited traditional IRA. Therefore, the divisors are the same as in your other thread addressing inherited TIRAs. Main difference in this case is that the inherited Roth distributions will be tax free.

Submitted by alberto vega on Fri, 2021-08-06 02:45

Which table should be used for the RMD of this inherited Roth IRA?Also can the single person avoid taking any distributions from the inherited Roth IRA’s

Submitted by Alan - IRA critic on Fri, 2021-08-06 15:13

Table I – single life table. RMDs are required, but the 10 year rule will usually apply with no distributions required until year 10.

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