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Author: 0x6a74 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121095  
Subject: Re: Another IRA RMD Question Date: 7/22/2011 7:36 PM
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<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.

Look like
• 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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