Inherited ROTH

[biker]

Client's brother Jim died 2/14/2023 at age 82.  No distribution from his ROTH account made prior to death.

Beneficiary is brother Richard age 79.

What is distribution rule for Richard based on above?

Can money stay in Richard's inherited ROTH account for 10 years or until 2/14/2033? or is there a yearly RMD requirement for Richard?  if yearly RMD is required, what year would it start.

Thanks

TFC13

[abctax55]

You should refresh your CPE regarding the RMD rules and Roth IRAs

[rbynaker]

If it's any consolation, I can't keep up with it either (even with CPE).  I have to look it up every time.  I've thought of making a flow chart but then there are certain situations where nobody is quite sure what the rules are.  The IRS seems to think that the 10-year rule added to old rules, other professionals think it was Congress' intent that the 10-year rule apply instead of the old rules.

Vanguard has a tool here that you might try:

https://inherited-rmd-calculator.web.vanguard.com/

If you have TheTaxBook or QuickFinder they might be helpful.  Otherwise you're left trying to sift through Pub 590B:

https://www.irs.gov/pub/irs-pdf/p590b.pdf

Rick

[abctax55]

Rick... check your email 😉

[qbteachmt]

Isn't it a bit late for internet homework? Seems like a word problem on a worksheet.

And for reference, the regulations changed, and then the IRS figures out how to make it happen. Those are the rules in constant flux right now. Retirement account issues are best learned by going directly to IRS resources. Give it about 5 years to settle down, if Congress stops making changes, to let the IRS figure out what meets their new requirements.