Hello,

I asked this question of several experts last year before taking a total disbursement from an inherited ROTH IRA. I mostly got the same answer but am asking again because it’s tax time and I’m getting nervous. Here are the facts:

1) Beneficiary ROTH IRA, originally was opened with a deposit in May, 2016.
2) Consisting of Stocks and Mutual Funds
3) I was a friend, not a relative
4) Previous owner died in June, 2020
5) Total Distribution in March, 2021
6) I am age 55

I was (usually) told that I would not owe taxes on the disbursement due to the following:

1) “Five Year Rule” met in January 2021 (due to IRAs automatically dating from January of tax year opened)
2) Age of Owner (not 59 1/2) waived due to Beneficiary ROTH account

Does everyone agree, I hope?

Just being super-paranoid! Thanks to all for your help!