inherited IRA | Ed Slott and Company, LLC

inherited IRA

Inherited IRAs and Real Estate in IRAs: Today's Slott Report Mailbag

Question: I inherited an IRA from my brother back in 2019. I have been taking required distributions from it each year. Can I do a qualified charitable distribution from this inherited IRA this year to satisfy the required distribution requirements from this IRA?

Inherited IRAs and SIMPLE IRA Creditor Protection: Today's Slott Report Mailbag

Question: In 2021, my wife inherited an IRA from her sister who was 4 years younger. My wife therefore is an EDB (eligible designated beneficiary). Her sister was 66 years old at date of death. My wife has been taking RMDs based on her own age. What happens when my wife dies? Do all the following beneficiaries have 10 years to deplete the inherited IRA? Are there RMDs that need to be taken each year for those beneficiaries? If so, is the RMD based on the factor that my wife was using?

Inherited Roth IRA: RMDs or No?

QUESTION: Do required minimum distributions (RMDs) apply to inherited Roth IRAs? ANSWER: It depends on who the beneficiary is. Owners of traditional IRAs must start taking RMDs when they reach their required beginning date (RBD). That date is generally April 1 of the year after a person turns 73 (or 72 prior to SECURE 2.0, or 70 ½ prior to the original SECURE Act).

INHERITED ROTH IRA RMDS AND MERGING IRAS: TODAY’S SLOTT REPORT MAILBAG

Question: Hello, Are you required to take out RMDs (required minimum distributions) on an inherited Roth IRA? The original owner was 82 when he passed away. The funds were left to his nephew, so I understand the 10-year rule will apply. Thanks for your help, David

Inherited Roth IRAs and Roth Conversions: Today's Slott Report Mailbag

Question: Am I correct to assume if I leave my Roth IRA to my 2 adult children, they will have to take all the money out by the end of year 10 and they will have NO taxes to pay on it because it is a Roth? They can take some out each year with NO taxes due, but have the option to leave it all in the account for 10 years, if they desire. Thank you! Louise

Five Facts You Need to Know About FDIC Insurance and Your IRA

The Federal Deposit Insurance Corporation (FDIC) has been in the news recently as bank failures have made headlines. The FDIC is an independent agency created by Congress. It provides deposit insurance coverage for institutions such as banks, in the event that the bank fails and does not have enough assets to pay off depositors.

Roth Conversions and Inherited IRAs: Today's Slott Report Mailbag

Question: Hi, I’m looking forward to the July workshop in Boston but hoping you can help with this question now. What happens if an account holder who is over age 59 ½ does a Roth conversion from his traditional IRA but dies before the five-year holding period?

INHERITED IRA 10-YEAR RULE AND DISABLED CHILD AS ELIGIBLE DESIGNATED BENEFICIARY: TODAY’S SLOTT REPORT

Question: Hello, I have an inherited IRA which falls under the 10-year rule. I understand that the IRS has tried to clear up the 10-year RMD (required minimum distribution) confusion but I am still not sure which RMD Table I am supposed to use! I am a non-spouse (daughter of the deceased) and it's confusing. Will I need to make up the RMDs for the first two years when the rules were not clearly stated? Thank you,

Education Savings Accounts and Inherited IRAs: Today's Slott Report Mailbag

Question: Can an Education Savings Account (ESA) be rolled into a Roth IRA under the recently enacted SECURE 2.0? 529 plans clearly can - beginning in 2024 - but I have found no reference to ESAs. Can you kindly clarify this and direct me to any literature? Thank you,

Inherited IRAs and Roth Conversions: Today's Slott Report Mailbag

QUESTION: I just inherited my spouse’s inherited IRA (he got it from his father). He (my husband) was already taking required minimum distributions (RMDs) based on his own single life expectancy. My question is, do I have to empty that account in 10 years based on the SECURE Act? (I think this is correct, but if I don't have to do it, I don't want to!)

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