The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: Roth investing/withdrawing at 60 Date:  3/15/2012  4:00 PM
Author:  JAFO31 Number:  70367 of 88763


<<<#1 Roth's have value if the goal is to pass money the Roth owner will not need to the next generation without taxes. (But keep in mind estate taxes don't happen on over 90% of the estates.)>>>

"but withdrawals from inherited IRA are taxed as income."

I do not believe that this statement is necessarily true with respect to Roth IRAs.

From Wikipedia:

"For income tax purposes, distributions from Roth IRAs to beneficiaries are not taxable if the Roth IRA was established for at least five years before the distribution occurs." citing IRS Publication 590 (2010), "What is a Qualified Distribution"

It is generally a true statement for traditional IRAs but only to the extent that there was no basis in the traditional IRA.

Regards, JAFO
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us