Inherited ROTH IRA 10-year rule RMD

Forum|Forum|1 year ago
October 24, 2024
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Hello,

I have an Inherited ROTH IRA that falls under the 10-year rule. Am I required to take a RMD in 2024?

thank you in advance

Caligirl71

The entire interest of the Roth must be distributed by the end of 10 years in the year of the owner's death. You can also read more about it on Pub 590-B under the Roth IRA section.

See below: Taken from Pub 590-B

Distributions After Owner's Death

If a Roth IRA owner dies, the minimum distribution rules that apply to traditional IRAs apply to Roth IRAs as though the Roth IRA owner died before their required beginning date. See When Can You Withdraw or Use Assets? in chapter 1.

Distributions to beneficiaries.

Generally, the entire interest in the Roth IRA must be distributed by the end of the 5th or 10th calendar year, as applicable, after the year of the owner's death unless the interest is payable to an eligible designated beneficiary over the life or life expectancy of the eligible designated beneficiary. See When Must You Withdraw Assets? (Required Minimum Distributions) in chapter 1.

If paid as an annuity, the entire interest must be payable over a period not greater than the designated beneficiary's life expectancy and distributions must begin before the end of the calendar year following the year of death. Distributions from another Roth IRA can't be substituted for these distributions unless the other Roth IRA was inherited from the same decedent.

Mr W

You are required to take an RMD if the deceased owner was age 73 and required to take RMDs before he or she died. But the IRS waived the penalty waived for 2020-2024 so you don't need to in for 2024. But starting in 2025 you may have to take an RMD. The new rules on this were quite confusing and complex which is why there was a waiver.