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Non-Spouse
Inherited IRA


Non-Spouse Inherited IRA

Non-Spouse Beneficiary: Inherited Roth IRA info

Qualified Distribution Options:

1. Use 5 Year Distribution Rule
  • No yearly RMDs required, as long as the account is depleted by the end of the fifth calendar year, following the year of the original IRA owners death.
-OR-

2. Make payable over the life expectancy of the designated beneficiary 
  • Distributions must begin by end of the calendar year, following the year of the original  IRA owners death.

Non-qualified Inherited Roth IRA Distributions:


Generally, non-qualified Roth RMDs taken by the beneficiary are included in the beneficiary's gross income, just as they would be included in the gross income of the original IRA owner.  

Please see instructions in IRS Publication 590-B for more information.
 

Non-Qualified Distributions are generally excluded from the 10% early withdrawal penalty, as distributions to a beneficiary as a result of the owner passing is a listed exception.

 

Non-Spouse Beneficiary: Non-Roth Inherited IRA info

If the original IRA account owner passes before the required beginning date, the non-spouse beneficiary has two options:

1. Use the Five-Year Distribution Rule
  • No yearly RMDs required, as long as account is depleted by the end of the fifth calendar year, following the year of the original IRA owners death.
-OR-

2. Make payable over the life expectancy of the designated beneficiary 
  • Distributions must begin by end of the calendar year following the year, following the year of the original IRA owners death.

If the original IRA account owner dies on or after the required beginning date, the RMDs are based on the longer of the following:

1. The life expectancy of the designated beneficiary 
  • Distributions must begin by end of the calendar year following the year, following the year of the original IRA owners death.
-OR-

2. The original IRA account owner's life expectancy  

Please see Instructions in IRS Publication 590-B for more information.

Learn about Spouse as Beneficiary Inherited IRA Distributions.

Learn about Inherited IRA Distributions.

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