Inherite Roth IRA withdrawal requirements and taxability

Submitted by alberto vega on Mon, 2023-02-27 00:25

Nancy born in 1945 inherits a Roth IRA when her friend Tina died in 2016 at age 82 (born in 1934).
Inherited Roth IRA balance as of 12/31/2022 is $100,000. Tina has been taken RMD from this Roth IRA since
2017 except for year 2020. Nancy will be 78 in 2023. Questions:
1. Nancy RMD factor for 2023 is 11.2 (Single Life Table effective 1/1/2022). Is that correct?
2. Does she has to take the RMD of $8928. 57 (100,000/ 11.2) in 2023?
3. If Nancy takes the RMD, is it non-taxable to Nancy.
4. If Nancy takes the RMD it will be reported on Line 4a, but with $0 on line 4b if non-taxable?
5. Does Nancy has to take an RMD from this inherited Roth IRA



Submitted by Alan - IRA critic on Mon, 2023-02-27 01:02

  1. Yes, 11.2 is correct for the 2023 divisor. 
  2. Yes, that figure is correct.
  3. Yes, because the inherited Roth is at least 5 years old and inherited. Therefore it is fully qualified.
  4. Also correct. Form 8606 is not needed.
  5. Yes, single life table RMDs are required. 
  6. Tina did not have an RMD requirement since Roth IRA has no RMDs for the owner, just the beneficiary.

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