The beneficiary can only use the longer LE of the owner if the Roth owner passed after their RBD, but Roth IRAs do not have RBDs.Looking at the IRS' guidance --> https://www.irs.gov/retirement-plans/pl ... eneficiary
you have a choice of the "longer of their own life expectancy and the employee's remaining life expectancy" or "10-year rule"
What was the age of the original IRA owner ?
Therefore, the OP is an EDB (not more than 10 years younger) and must use their own LE per Table 1 in Pub 590 B.
If the beneficiary will be 81 on their birthday in 2024, the 2024 divisor is 10.5, and reduced by 1.0 for each year thereafter. However, see Option 2 below:
Option 2:
Because the Roth owner passed prior to RBD, an EDB can opt out of EDB treatment and into the 10 year rule. The Roth custodian would have to be notified of this election by the end of 2024. Under the 10 year rule there would be no annual RMDs, again because the Roth owner passed prior to RBD. This might be one of the few situations where opting out could make sense because the inherited Roth will not last more than 10 years anyway, all distributions will be tax free once the Roth has been held for 5 years (by owner plus beneficiary), and not touching it till year 10 would allow the Roth to generate tax free gains on the entire balance. Beneficiary would not have any RMD calculations to make, but the inherited Roth must be drained by the end of 2033.
Statistics: Posted by Alan S. — Sat May 18, 2024 11:12 pm — Replies 2 — Views 199