Considering that Roth IRA withdrawals are not taxable neither to the Roth IRA owner nor to the Roth IRA beneficiary, you may think it odd that an excise tax (penalty) applies if someone who inherits a Roth fails to take his RMDs.
As an eligible designated beneficiary, you can choose between the 10-year rule and the single life expectancy option for your inherited Roth IRA.
Due to new laws and IRS waivers, taking required minimum distributions from an inherited IRA can bring a lot of questions.
If you turned 72 years old in 2022, are you wondering if SECURE 2.0 allows you to delay your first RMD until you are 73?
While an IRA is an easy asset to inherit because it bypasses the probate process, trouble lurks beneath the surface if you are not informed.
If the IRA you inherited does not have the year-of-death required minimum distribution withdrawn before the deadline, what are your next steps?
When working past age 72, the date of your retirement can make a big difference when it comes to taking RMDs from your current employer's 401(k) plan.
If you turned 72 during the second half of 2021, but did not take your first RMD last year, you will need to do so by April 1 or face a 50% excise tax.