Roth ira inherited; what is RMD
Mary, a single person age 76 in 2021, inherited a Roth IRA in May 2016 from a single person (age 73 in 2016) that died in 2016 and that was not a relative.
The inherited Roth IRA balance was $25,000 as of 12/31/2020.
1. Does Mary has to take RMD in 2021 or in later years?
2.. IF so, what is the RMD in 2021. How is the factor to use an how is it computed. What table to use
3.. What would be the factor for the year 2022 for Roth IRA distribution, if required
4. If a Roth IRA distribution was taken by Mary in 2019 does Mary has to take ROTH Ira distributions in
2021 and later years
Permalink Submitted by Alan - IRA critic on Sun, 2021-09-19 16:49
She had to take a beneficiary RMD every year from 2017-2021 except for 2020. This must continue after 2021 as well. If she did not, then she must make up the missed RMDs and file a 5329 for each year to request that the penalty be waived.
The answer is the same as for the TIRA described in your other thread, except of course to use the Roth IRA year end balance of 25,000 to determine the 2021 inherited Roth RMD.
Same as other thread. The RMD must be reset to the new tables as described there.
Yes. One difference is that a Roth owner always is treated as passing prior to the RBD. While it would not be beneficial, she could have elected the 5 year rule instead of life expectancy RMDs if she did so by 12/31/2017. Under the 5 year rule there are no annual RMDs, but the inherited Roth must be drained by 12/31/2022.
Permalink Submitted by alberto vega on Sun, 2021-09-19 17:02
I thought Roth IRA accounts did not required RMD? Or is it only for the original owner of the Roth IRA?What is RBD?Is it then that an inheritor of a Roth IRA has to take RMD as if were a traditional IRA? In this case Mary has to use which table and what factor for the Roth IRA distribution in 2021. She did not use the 5 year rule before.
Permalink Submitted by Alan - IRA critic on Sun, 2021-09-19 20:58
Inherited Roth IRAs are subject to RMDs just like inherited TIRA accounts. The calculation is the same as described here.
Inherited IRA RMD | Ed Slott and Company, LLC (irahelp.com)