Roth IRA beneficiaries
Are Roth IRA beneficiaries who are younger than 59 and a half subject to the 10% early withdrawal tax?
Terry Says
Only if the ROTH IRA is less than 5 years old. But there are new rules for distributions from an inherited Roth IRA. Basically the money must be taken out in 10 years, UNLESS you are a “qualified” beneficiary.
Please read this comprehensive article: https://www.fool.com/retirement/plans/roth-ira/inherited/#:~:text=If%20you%20inherit%20a%20Roth%20IRA%20from%20a,that%20you%20qualify%20as%20an%20eligible%20designated%20beneficiary.?msockid=2fad0ca1d9996e811ce41fb2d8fb6f71
But remember, the idea is to stretch out the tax-deferred growth of the inherited Roth IRA, perhaps taking it out as far down the road as required.
