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Financial Planning / Tax Strategies
|Subject: Re: Another IRA RMD Question||Date: 7/22/2011 7:36 PM|
|Author: 0x6a74||Number: 113809 of 121585|
<grump> ..i'll have to research since i've been converting Roth with that in mind.
Phil, as always, is correct. Income tax on inherited ROTH IRA distributions is possible, but is not as serious as it may first appear.
RMDs are required on inherited IRAs. A spouse who inherits an TIRA can transfer it to their name and avoid inherited RMD requirements. I believe, the same is true for a ROTH.
once again i looked at PUb.590.
• only way an inherited Roth is taxable (as income) is if it's less that five years old, and
• RMD (on inherited Roth) is like tIRA "as though ..owner died... before required beginning date" /but(?) "generally Roth must be distributed by the end of the fifth calendar year of the owner's death"
if i'm reading this correctly, i'm fine (this is one time, it's all about ME <g>) -- my sister is my only heir and she's likely to empty both accounts (IRA and Roth) ASAP .. so anything i can convert saves her taxes on the IRA
( assuming i've haven't spent it all on Twinkies or lost it all in the Market )
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