Inherited Roth IRA
Inherited Roth IRA Rules
Most non-spouse beneficiaries must empty an inherited Roth IRA by December 31 of the tenth year after the owner died, but they generally do not take annual RMDs in years 1–9. Qualified withdrawals are tax-free.
What to know first
- A Roth IRA owner has no required beginning date, so the account is treated as a pre-RBD inheritance.
- Most non-spouse designated beneficiaries use the 10-year rule without annual RMDs during the window.
- The account still must be empty by the end of year 10 unless an eligible designated beneficiary exception applies.
- Earnings may be taxable if the Roth IRA has not satisfied its five-year holding period.
The 10-year rule for a Roth inheritance
For deaths after 2019, most non-spouse designated beneficiaries must fully distribute the inherited Roth IRA by December 31 of the tenth year after death. The rule sets an outside deadline; it does not require equal withdrawals.
Because Roth IRA owners never have lifetime RMDs, the annual year-1-through-year-9 RMD rule for post-RBD traditional accounts does not apply. A beneficiary can generally wait, spread withdrawals, or empty the account earlier.
When an inherited Roth withdrawal is taxable
Contributions come out tax-free. Earnings are also tax-free once the original owner’s Roth IRA has met the five-year holding period. The holding period carries over to the beneficiary rather than restarting at death.
If the five-year period has not been met, earnings distributed before it ends may be taxable. Inherited IRA withdrawals are not subject to the 10% early-distribution additional tax.
Model your inherited IRA deadline
Use the inherited IRA calculator to compare the 10-year rule, annual beneficiary RMDs, and eligible designated beneficiary schedules.
Open the inherited IRA calculatorFrequently asked questions
Do inherited Roth IRAs have annual RMDs?
Most non-spouse beneficiaries do not have annual RMDs in years 1–9, but they must empty the account by the end of year 10.
Can I leave an inherited Roth IRA untouched for 10 years?
Generally yes for a non-spouse beneficiary using the 10-year rule, provided the full account is distributed by the deadline.
Sources
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