Inherited ROTH RMD rules
Is there really an RMD required on a inherited ROTH? If so, is it the same and IRA? Couldn’t the beneficiary take the whole amount tax free?
Is there really an RMD required on a inherited ROTH? If so, is it the same and IRA? Couldn’t the beneficiary take the whole amount tax free?
Permalink Submitted by Alan - IRA critic on Mon, 2018-02-12 23:04
Yes, the inherited Roth (non spouse) RMDs are the same as they would have been for a non Roth IRA. If the Roth had been opened 5 years before the date of death, the entire Roth is tax free. Otherwise, any earnings in the Roth (which come out last) would be taxable until the 5 years is completed. Therefore, the simple answer is not to withdraw earnings until the 5 years is complete.