At a glance
- A 53-year-old who inherited a Roth IRA in 2020 falls under the SECURE Act's 10-year rule and owes no annual RMDs.
- The inherited Roth IRA must be emptied by Dec. 31, 2030, and anything left then becomes that year's RMD.
- For advisors, the operational risk is the calendar: the beneficiary faces IRS penalties if an annual RMD or the 10-year deadline is missed, and few custodians follow up diligently, the explainer says.
Inherited IRA beneficiaries, including Roth IRA beneficiaries, are subject to required minimum distributions, and the duty to calculate and take them falls on the beneficiary, Ed Slott — IRAHelp said in a Nov. 9 explainer.
A 53-year-old who inherited a Roth IRA in 2020 falls under the SECURE Act's 10-year rule and owes no annual RMDs. The inherited Roth IRA must be emptied by Dec. 31, 2030, and anything left then becomes that year's RMD. A 68-year-old whose brother died in 2026 at age 70 before his required beginning date is an eligible designated beneficiary. Because she is no more than 10 years younger, she owes no 2026 year-of-death RMD, but she must take annual RMDs starting in 2027 based on her single life expectancy.
For advisors, the operational risk is the calendar: the beneficiary faces IRS penalties if an annual RMD or the 10-year deadline is missed, and few custodians follow up diligently, the explainer says.
Reported by the Tax & estate planning desk from Ed Slott — IRAHelp. Published . Corrections