Inherited Roth
The original Roth IRA was owned by a client whose DOB was 01-1951. When the client passed away 02-2021 the named beneficiary was the client’s niece. The client was age 70 when she passed.
After the passing, we opened an Inherited Roth IRA for the niece, current age 46. Under the new post 2020 rules, does the client need to take annual RMDs?
Thank You
Permalink Submitted by David Mertz on Wed, 2023-03-22 17:21
The niece is subject to the 10-year rule, but annual RMDs are not required because the client died before the client’s required beginning date for RMDs. Roth IRA owners are always treated as passing before their RBD because the owner is not required to take RMDs from a Roth IRA.