Are There Any Required Distributions or Withdrawals?

The distribution rules that apply to traditional IRAs do not apply to Roth IRAs.  With a Roth IRA you are not required to make withdrawals at any age, as long as you live.  However, in the event of the death of a Roth IRA owner, there are minimum distribution rules that apply.  These are generally the same as those that would apply for traditional IRAs.

Distribution to a Beneficiary

The entire amount in the Roth IRA must be distributed within 5 years after the end of the year of the owner’s death, unless the amount in the Roth IRA is payable as an annuity to a designated beneficiary.  The entire amount must be payable over no longer than the beneficiary’s life expectancy, and distributions must begin during the calendar year following the owner’s death.  If the beneficiary is the owner’s spouse, the distributions can be delayed until the decedent would have reached age 70 ½.

If the distribution is not a qualified distribution, because the 5-year period had not been completed by the date of the owner’s death, for example, the distribution may be taxable to the beneficiary.  But the additional 10% tax would not apply because of the exception for the death of the Roth IRA owner.

Tax on Excess Accumulations

If the required minimum distributions are not made from an inherited Roth IRA, or if the distributions are less than the required amounts, there may be a 50% excise tax applied on the amount that was not distributed as required.