THE ROTH IRA ADVANTAGE UNDER THE FINAL RMD RULES
The above article posted on your site on 8/21/24 discusses the 10 year rule for inherited Roth IRAs.
Do you have a reference for this information? My broker is saying the IRS web site indicates that RMDs are required for inherited Roths. I agree with your post but wondered if there was a reference to where the information is sourced from?
Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2025-05-29 10:54
Inherited Roths are subject to RMDs, but because all Roth owners pass prior to RBD, they RMD is limited to the 10 year rule and therefore the RMD is only in year 10. This is the same treatment that an inherited TIRA is subject to when the owner passes prior to RBD.
There was never a question over annual RMDs not being required when the owner passes prior to RBD. The debate was whether annual RMDs would be required if the owner passes post RBD and the final Regs confirmed that they are. But it has always been the case that Roth owners always pass prior to the RBD, because there is no RBD for Roth owners. See IRS Reg 1.408(A)-6, QA 14.
Because there are no beneficiary RMDs for Roth IRAs until year 10 and the distribution will then be tax free, it would be preferable not to take any distributions from the inherited Roth until year 10.