Surviving Spousal Beneficiary Roth IRA RMD Under SECURE Act
Mary inherits a Roth IRA from her husband, John. She decides to treat it as her own Roth IRA. It is my understanding that she does not have to take RMDs from this inherited Roth IRA during her life, just as she doesn’t have to take RMDs from a Roth IRA that she had contributed to during her life. Is this true? The answer seems to be an obvious YES. Is it?
Permalink Submitted by Alan - IRA critic on Fri, 2021-10-08 00:29
Yes, that is correct. Her Roth IRA is treated as being held from the year her husband first contributed to a Roth IRA or the year she first contributed. However, her Roth IRA is not qualified with earnings tax free until she reaches 59.5. RMDs do not apply.
However, if she maintained the inherited Roth as a beneficiary, RMDs would be required, but not before deceased spouse would have reached age 72 if she is the sole beneficiary. If 5 years have passed since husband’s first Roth contribution, her inherited Roth would be qualified and entirely tax free. If she needs to tap Roth earnings before she reaches 59.5, she might therefore maintain the Roth as inherited until 59.5.