Ask Terry Questions Inherited IRA Record Keeping

Inherited IRA Record Keeping

By Terry Savage on August 04, 2018 | Financial Planning / Retirement

I inherited two IRAs (one a Roth and the other a non-Roth). Four yrs ago I started taking annual required minimum distributions from each. Must I retain any of the records from the original owner prior to her death? Thank you in advance.

Terry Says

I’m a legendary collector of old paperwork, but strictly speaking you do not need to keep all the investment paperwork on an inherited IRA, once it is transferred into your name. Just keep the paperwork relating to the valuation at death, and the rollover into an inherited IRA.
As an aside, many people might be surprised to hear that you must take RMDs from an inherited Roth IRA —if you are a non-spousal beneficiary. Spouses who inherit a Roth are not required to make RMDs. But at least the withdrawals are not taxable income from the inherited Roth.
And one more thing: be sure to name a new beneficiary for these accounts!

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