INHERITED ROTH IRAS – NONSPOUSE BENEFICIARY
01.Core Concepts
• RMDs are not required during life but are required after death. • Qualified distribution rules will apply. 1. Death, disability, 59½ or first-time home, and 2. Distribution must occur five years after the first contribution or conversion to a Roth IRA. • 5-year clock of deceased participant carries over to beneficiary INHERITED ROTH IRAS - EXCEPTION FOR SURVIVING SPOUSE • Exception applies when a spouse elects to treat the inherited Roth IRA as their own Roth IRA. • Five-year period ends the earlier of the end of either the spouse’s own or the inherited IRA five-year period. • Spouse is treated as having always owned the inherited Roth IRA. • The penalty exception/triggering event for death does not apply to distributions during the spouse’s lifetime. • Minimum distributions are not required during the life of the surviving spouse.