RMD from a Roth IRA?

[Roland Slugg]

Does everyone visiting this forum realize that there is an RMD requirement for inherited, non-spousal Roth IRAs? I did not until just a few days ago. It does make sense, though. Congress apparently decided that to NOT have such a requirement, huge sums of $$$ would eventually find their way into Roth IRAs, producing never taxed income for beneficiaries who never contributed to them.

The RMD in this situation must begin the very next year after inheritance and is based on the IRS's single-life table. That is NOT the same table as the "uniform" table from which regular RMDs are figured for traditional IRAs.

[WhiteOleander]

Now, wait. Some of that Roth money is taxed money. The participant did not get a tax deduction on the contributions,. So, does the bene get a basis?

[Gene V]

paragraph

paragraph from TTB 13-15

Distributions after Roth IRA Participant’s Death

RMD rules do not apply while the participant is alive. At the death
of the Roth IRA participant, the RMD rules apply to the beneficiary
as though the Roth IRA owner died before his or her required
beginning date. Distributions from an inherited Roth IRA are
tax-free unless the Roth IRA participant did not meet the 5-year
holding period requirement for contributions or conversions.

[jimenright]

What does it matter,

since the distributions are not taxable? Just move the funds out of the Roth IRA to the same investment outside the IRA. If the five year requirement is not met, leave those funds in the IRA.