Inherited ROTH IRA Rules
Father passes away (12/18/1937 – 08/30/2021) and leaves daughter his ROTH IRA. Has the IRS clarified for ROTH IRAs whether any RMDs need to be taken each year, or can daughter just wait to year 10 to take the full distribution? In this case, since father died 8/30/21, the last day any money can be in the account is 12/31/2032 correct? or 12/31/2031?
Thank you!!
Permalink Submitted by Alan - IRA critic on Fri, 2023-02-17 21:18
All Roth owners pass prior to RBD because a Roth IRA has no RBD. The IRS proposed Secure Act Regs do not require annual RMDs within the 10 year rule when death is prior to RBD. As such, daughter can leave the inherited Roth IRA alone after retitling it in beneficiary form. She only needs to drain it by the end of 2031, leaving 9 more years to generate tax free gains.