Based on the emails I am getting there are a few key points to clarify about inherited Roth IRAs and RMDs: Non eligible beneficiaries who inherit a Roth IRA just like a Traditional IRA are subjected to the 10-year rule, meaning they must withdraw the entire balance within 10 years of the original owner's death. For inherited Roth IRAs UNLIKE Traditional IRAs you DO NOT have to take RMDs in years 1-9, regardless of the deceased owner's age. The difference between a traditional IRA and a Roth IRA is Roth IRA owners do not have required minimum distributions (RMDs) during their lifetime. Traditional IRAs, DO! Obviously this is just another reason I love Roth IRAs but the ability to wait until year 10 to withdraw from an inherited Roth IRA is a big deal, that I hope you all take advantage of if you can, as it allows for more tax-free growth. Okay I hope that is clear now

Posted by Suze at 2024-07-28 23:50:11 UTC