GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’ve got the option to read more about oureditorial guidelinesand our products and servicesreview methodology.
Inherited Roth IRAs do not inherit the samecontribution and withdrawal rulesas the original retirement account, however.
They have their own set of sometimes complex rules that depend on many factors.
Any taxable distribution must be reported as gross income.
So, do not view this as your retirement account, with thecommon applicable IRA rules.
Failing to do so can result in penalties.
However, there are many factors that can affect what these look like.
These can get very nuanced.
Below is an overview of the rules if the original account holder died in 2020 or later.
If the deceased wasnt old enough to take the minimum required distributions they must follow the 10-year rule.
If the beneficiary isnt considered aneligible designated beneficiary, their only option is to follow the 10- year rule.
So its wise to consult a tax professional.
FAQ
Takeaway
Finding and working with a financial advisor is a great idea.
A financial advisor will help keep track of your finances and assist you in attaining your financial goals.
Get to know your Financial Advisor options today for Free!
you’re free to learn more about GOBankingRates processes and standards in oureditorial policy.
Share This Article:
