SECURE ACT IRA Non-Spouse Beneficiar Withdrawals
IF A NON-SPOUSAL BENEFICIARY OF A ROTH IRA (Original owner was 80 years old at time of his death) INHERITS THIS ROTH IRA. CAN THE BENEFICIARY WAIT UNTIL THE END OF THE 10TH YEAR AFTER THE DEATH OF THE ORIGINAL OWNER AND THEN WITHDRAW 100% OF THE ACCOUNT BALANCE WITHOUT ANY PENALTIES? THANK YOU.
Permalink Submitted by Alan - IRA critic on Sun, 2022-07-24 14:33
Yes, there are no annual RMDs required in years 1-9. Even with the proposed IRS Secure Act Regs, the annual RMDs only apply if owner passed after their RBD, and a Roth has no RBD therefore all owners are treated as passing prior to RBD. Beneficiary can wait and withdraw the entire balance at the end of year 10 tax free..