No, the entire Roth IRA can now be withdrawn tax-free. (See fabdog's quote of the IRS rules.)Thanks, that is what I thought. 5 years till earnings are tax free.
The deceased could have opened and converted to a Roth on the day before she died, and the withdrawal will be tax-free. (Of course, the deceased's tax return would have to pay the Roth conversion taxes.)
I can't think of any case there the IRS requires something, then penalizes you for doing it. In this case, the IRS wants the money to start being withdrawn. You can't let the Roth grow tax-free forever!
Statistics: Posted by celia — Sun Feb 04, 2024 11:43 am — Replies 4 — Views 561