Ask the Hammer: Understanding the Exceptions to the Exceptions for IRAs
In this Ask the Hammer episode, a reader asks this question:
“Upon my father's passing in 2021, my siblings and I became the beneficiaries of his traditional and Roth IRAs. They were split into separate accounts by the end of that year. We each took a distribution that year from his traditional IRA because he had reached his required beginning date for distributions but hadn't taken the 2021 distribution prior to his death. Am I allowed to elect the 10 year rule and thus not be required to take another distribution from the inherited traditional IRA until December 31, 2031? Or am I required to make an annual life expectancy distributions starting in 2022 using table one of IRS publication 590-b? My brain is numb from trying to understand the exceptions to the exceptions to the exceptions. I presume there are no annual distributions required of inherited Roth IRAs that only the 10 year rule applies to someone in my situation. Am I right about that?”
Jeffrey “The Buckinghammer” Levine of Buckingham Wealth Partners, met with Robert Powell, editor of Retirement Daily, to answer this question.
Jeffrey and Bob talk about the 10-year rule for inherited Roth IRAs and how it’s different from an inherited traditional IRA. They also talk about RMDs and required beginning dates for inherited IRAs.
Watch the full episode to find out the answer to this reader’s question.
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