Per Stripes ROTH IRA Inheritance
Do grandchildren who inherit a ROTH IRA per stripes potentially have the same 10 year period of tax free growth as if they were individually named as contingent beneficiaries by the ROTH owner.
Do grandchildren who inherit a ROTH IRA per stripes potentially have the same 10 year period of tax free growth as if they were individually named as contingent beneficiaries by the ROTH owner.
Permalink Submitted by Alan - IRA critic on Tue, 2022-09-06 18:57
Yes, they are treated as designated beneficiaries in either case, not successor beneficiaries. A disabled or chronically ill grandchild would qualify as an EDB, who could stretch the inherited IRA beyond 10 years but annual RMDs are required. A grandchild does not qualify as an EDB as a minor, since those EDBs are limited to the children of the IRA owner, and these are grandchildren.