Six focused articles plus three decision-engine tools covering Roth IRAs after the original owner's death — beneficiary categories, the 10-year depletion rule under TD 10001, spousal carve-outs, non-spouse rules, RMDs, tax treatment, and special situations (NRA, minors, community property, trusts). Pick a card to dive in; the comprehensive reference lives at Inherited Roth IRA Overview.
Inherited Roth IRA Overview
The pillar guide: spouse, EDB, and non-EDB rule sets in one place; full statutory references.
The 10-Year Rule
SECURE Act depletion deadline; per TD 10001 (July 2024), no annual RMDs years 1–9 for inherited Roth.
Non-Spouse Beneficiaries
EDB carve-outs, the 10-year rule, and what changed after the SECURE Act.
Inherited Roth RMDs
When annual distributions are required, when they are not (TD 10001), and how to compute the divisor.
Tax Treatment
Federal tax-free in most cases; state-level nuances; IRD under IRC §691 and the no-step-up rule.
Special Situations
NRAs, minors, community property, see-through trusts, divorce, and other edge cases.
Inherited Roth IRA Decision Engine
Beneficiary category → depletion schedule → tax outcome. Tool, not advice.
Inherited Beneficiary Type
Spousal, EDB, or non-EDB — decision tree to the right rule set.
10-Year Rule Schedule
Depletion deadline + year-by-year suggested withdrawal pacing for non-EDBs.
Frequently Asked Questions
Are inherited Roth IRAs subject to RMDs?
Yes — unlike the original owner, beneficiaries face distribution requirements. For deaths after 2019, most non-spouse beneficiaries fall under the 10-year depletion rule (SECURE Act). Per TD 10001 (July 2024), inherited Roth IRAs under the 10-year rule have NO annual RMDs in years 1–9 — only the depletion deadline by December 31 of year 10. Eligible designated beneficiaries (spouse, minor child, disabled, chronically ill, less-than-10-years-younger) get different rules including the option to stretch over life expectancy.
Are inherited Roth IRA distributions tax-free?
Generally yes, at the federal level. Distributions of contributions and converted dollars are always tax-free to the beneficiary. Earnings are tax-free if the original owner’s Roth IRA had been open at least 5 years (the 5-year clock continues running and is satisfied based on the decedent’s contribution history). State tax treatment can vary. Inherited Roth IRAs are income-in-respect-of-decedent (IRD) under IRC §691 and do NOT receive a stepped-up basis under §1014, but for Roth this rarely matters because distributions are usually tax-free anyway.
What is the 10-year rule?
Under SECURE Act (effective 2020), most non-spouse beneficiaries of an IRA must deplete the inherited account by December 31 of the 10th year following the year of the original owner’s death. For inherited ROTH IRAs specifically, TD 10001 confirms there are no annual RMDs during years 1–9 — the beneficiary can take distributions on any schedule they want, as long as the account is empty by year 10.
Who is an Eligible Designated Beneficiary (EDB)?
Five categories under SECURE §401(a)(9)(E)(ii): (1) the surviving spouse, (2) a minor child of the original owner (until age 21 per TD 10001, then the 10-year clock starts), (3) a disabled beneficiary as defined in IRC §72(m)(7), (4) a chronically ill beneficiary, and (5) any individual not more than 10 years younger than the decedent. EDBs can stretch distributions over their own life expectancy instead of the 10-year rule.
Can a spouse beneficiary roll an inherited Roth into their own?
Yes — a surviving spouse has unique options unavailable to other beneficiaries. They can: (a) treat the inherited Roth as their own (either by election or by rollover into their own Roth IRA), in which case all the original-owner rules apply going forward including no lifetime RMDs and full ordering rules; or (b) remain a beneficiary, which can be useful if the surviving spouse is under 59½ and may need penalty-free access. The choice is reversible only in limited circumstances, so it should be made deliberately.