One of the most attractive features of a Roth IRA is the ability to control the timing of the eventual required distributions. However, this ability mandates the withdrawals to be made within a prescribed set of rules.
The distribution advantages of a Roth IRA extend beyond the death of the IRA owner. But to make sure the spouse and children can benefit, things have to be set up properly. Here is a summary of the Roth IRA distribution rules at death.
Many people do not like the requirement that a traditional IRA must start required minimum distributions (RMDs) at age 70 1/2. Perhaps they don’t need the income yet. Maybe they would just as soon let the IRA continue to grow. In any event, the RMDs are taxable. Depending on the circumstances, they may even make part of Social Security retirement benefits taxable.
RMDs during the life of the Roth IRA owner are not required. If and when income is needed, withdrawals can be made, but there is no IRS requirement.
When the Roth IRA owner dies, RMDs must begin. When they are required to begin and how the distributions are received is a function of several factors.
Your Spouse is the...
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