sole beneficiary of a Roth IRA
Good Day.
A spouse is the sole beneficiary of a Roth ira and inherited her husband’s Roth IRA. He had the Roth for 12 years, and the spouse rolled the Roth into her Roth, with no other money in the Roth, only the inherited Roth. She is now over 60 and would like to take out some money, and her rollover Roth is only three years old after her husband passed. Does she get his holding period of 12 years?
Thanks in advance. Best, CS
Permalink Submitted by Alan - IRA critic on Wed, 2023-05-10 15:42
Yes. A surviving spouse get the longer holding period of her Roth or that of the deceased spouse after the spousal rollover. But her age is used, therefore she must be 59.5 as is the case here. Her Roth is now qualified and tax free. Distributions are only reported on line 4a of Form 1040. Form 8606 is not required.