Inherited Roth IRA RMD?
I inherited a Roth IRA from my Mom who passed away 4/24/2022. The IRA was rolled into a Inherited Roth IRA.
The Roth IRA was originally my Dad’s IRA. The Roth IRA was in place for over 5 years. We did a spousal IRA rollover to my Mom in 2021, My DAD passed away March 2021 .
My inherited IRA MEETS the 5 year rule? As it was originally in existence for over 5 years as my Dad’s IRA
Due to the SECURE Act and the 10 year depletion rule. There are no RMDs for my inherited Roth IRA described above?
If RMDs are required, then first RMD would be required in 2023? This is because The original IRA owner opassed away this year?
Thank you.
Permalink Submitted by Alan - IRA critic on Fri, 2022-09-23 00:45
Yes, your inherited Roth has met the 5 year holding period because Dad’s first Roth contribution year is treated as Mom’s first year once she assumed ownership of his Roth IRA. Your Roth is also fully qualified and tax free because the Roth was started by your Dad over 5 years ago and you inherited Mom’s Roth. You only need to report any Roth distributions you take directly on line 4a of Form 1040. You do not need Form 8606. Finally, you are not required to take annual RMDs, your only requirement is to drain the inherited Roth by 12/31/2032, and since all distributions are non taxable, you would benefit by waiting until 2032 to drain the Roth in order to provide more time to generate tax free gains.