RMD on Inherited ROTH account
I have seen conflicting information on this topic. If a beneficiary (son) inherits a ROTH IRA (from mom who passed at 78 in 2021), is he subject to both an annual RMD and the 10 year rule or just the 10 year rule. For 2021, the mom was not subject to RMD prior to passing. For 2022, the information from my custodian vs Ed are different w/r/t the RMD amount. Per the seminar in July, Roth accounts do not have an RBD, so there is never an RMD to calculate and thus the balance just needs to be depleted by the end of 2031. Please advise if there has been any additional guidance or information on this topic. Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2022-11-07 15:41
Nothing has changed since the proposed Regs have not been finalized. A Roth IRA does not have an RBD and therefore all Roth owners pass prior to their RBD. As such, per the proposed Regs the beneficiary is not subject to annual RMDs within the 10 year rule. The inherited Roth can be left intact until the final year, which provides the maximum time to generate tax free earnings, all of which are non taxable as soon as the Roth has been held for at least 5 years by the owner and beneficiary combined.