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Amanda Parker inherits a Roth IRA from her uncle Charles. The IRA was started in 2012 and has a value of $6500 consisting of $6000 of contributions and $500 of earnings. If Amanda takes immediate distribution of the account she will receive the $6000 of contributions tax free.
That results in 10 year rule beneficiaries not having to take annual RMDs in years 1-9, but they must drain the inherited Roth in year 10. Since the 10 year rule was new starting for deaths after 2019, prior to 2020 all non spouse Roth IRA beneficiaries had to take annual RMDs, but not for deaths after 2019. Beneficiaries do not have RBDs, as ...
My understanding of the rules for distributions is: For the Inherited tIRA, the calculation is based on Single Life Table (SLT). She calculates her age in 2025 (58) and the SLT divisor for age 58 is 28.9. The calculation for the RMD (in 2025) is the balance of the Inherited tIRA on 12/31/2024 divided by 28.9.
Re: Inherited 403b Roth conversion for non-spouse. by Alan S. » Mon Aug 08, 2016 4:33 am. Under IRS rules you could maintain an inherited Roth IRA and an inherited 403b together. However, the 403b plan provisions will determine if you can do these partial Roth rollovers after taking your annual RMD, or if the plan restricts annual distributions.
Re: Non-Spouse Inherited IRA Post by delamer » Thu Jan 25, 2024 7:36 pm CAsage wrote: ↑ Thu Jan 25, 2024 7:31 pm If the irresponsible child was named beneficiary, you have no say whatsoever in what is done (beyond offers of advice).
Re: IRS rules for inherited 403 (b) plans vs. IRAs? by sscritic » Sun Sep 23, 2012 2:21 pm. The IRS offers Publication 571, Tax-Sheltered Annuity Plans (403 (b) Plans). Nonspouse beneficiary. A nonspouse beneficiary may make a direct rollover of a distribution from a 403 (b) plan of a deceased participant if the rollover is a direct transfer ...
The IRS will not treat a beneficiary of an inherited account in a plan or IRA who was subject to the 10-year rule and who failed to take an RMD for 2021 and 2022 as having failed to take the correct RMD. Eligible designated beneficiary. Spouse or minor child of the deceased account holder.
When an IRA owner passes with IRA basis documented on Form 8606, the remaining basis is inherited by the beneficiary in proportion to the beneficiary interests. [36] If the beneficiary is a surviving spouse who rolls the IRA over to their own name or defaults to ownership by perhaps missing an RMD, the inherited basis is added to any basis the ...
Your spouse will still be subject to the 10 year rule (inherited IRA must be drained by 2031), however her annual RMDs in years 1-9 must continue her mother's RMD schedule (divisors her mother was or would have been using). These successor beneficiary RMDs are included in the IRS issued RMD waivers for 2021-2023.
A. Inherited Old Roth held by the decedent for more than five years: inherited basis is not taxable, and gain will not be taxable. B. Inherited New Roth held by the decedent for fewer than five years: inherited basis is not taxable, but gain IS taxable. It is unlikely I we are going to unravel this if we should have each had two inherited Roth IRA.