Timing of ROTH Beneficiary IRA Setup
Mother passed away in 2020. Son and daughter are 50/50 beneficiaries for ROTH IRA. Both will need to follow 10 year rule. Since the 10 year rule will apply to both do they need to set up their individual beneficiary ROTH IRA’s by 12/31/2021?
Permalink Submitted by Alan - IRA critic on Mon, 2021-11-22 23:20
No, not for RMD purposes. However, the first time either one of them needs a distribution, a separate inherited IRA will have to be set up for 50% of the current balance. Or the first time one of them wants to change the investments, the other one will have to agree. They really should set up separate inherited Roth accounts as soon as possible and name their own beneficiaries so the accounts will be operable when distributions or investment changes are needed.