Inherited Roth IRA by Non-Spouse Child and not an EDB

Hello,

I would like to have my understanding of a Roth beneficiary (non spouse and not an EDB) inheritance requirements confirmed:

I am 80 years old and have my children listed on one of my Roth IRA’s as beneficiaries.  They do not qualify under any of the EDB classifications. All dollars in that Roth account were as a result of 100% Roth contributions or conversions.

Upon my death, my children (beneficiaries) need to withdraw the full balance within the inherited account by December 31st of the 10th year after my death. There is nothing requiring them to withdraw any specific amount in each of the 10 tax years. If they choose, they can withdraw the entire account value on December 30th of the 10 year following my death. Am I correct and did I miss anything? Thank you.

Bob

 



Bob, you are correct.

Since the growth over those 10 years will be tax free, they would be better off to wait until the end of year 10 to take the tax free RMD distribution.

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