50% penalty on undistribued RMD’s from inherited Roth IRA
Are undistributed required minimum distributions from an inherited Roth IRA subject to the 50% penalty under Section 4974?
Are undistributed required minimum distributions from an inherited Roth IRA subject to the 50% penalty under Section 4974?
Permalink Submitted by Alan - IRA critic on Mon, 2017-10-16 16:51
Yes. Per Sec 408 A (c)(5), Roth IRAs are exempt from RMDs BEFORE death. After death they are treated the same as traditional IRAs which would include the 50% penalty under Sec 4974.