Required Minimum Distributions, Beneficiaries, and your Roth IRA

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Roth IRA and other Retirement Planning topics.

Are there Required Minimum Distributions with a Roth IRA?

Required Minimum Distributions, Beneficiaries, and your Roth IRA

If you own a Roth IRA then you will most likely be delighted to learn that there are no Required Minimum Distributions that apply to you. However, if you leave your Roth IRA to a beneficiary, there will be Required Minimum Distribution rules that your beneficiary must adhere to. Calculating the amount of the Required Minimum Distribution can be very tricky so it is best to get advice from your financial adviser. However, the beneficiary will typically dived the fair market value of the IRA by the single life expectancy percentage to determine the correct amount of the distribution. Again, since the IRS can penalize you for not taking the Required Minimum Distribution, you should follow the advice of your financial counsel.

   

Comments

Nobody has commented on this tip yet. Be the first.



Name:


URL: (optional)


Comment:


Not finding the advice and tips you need on this Retirement Planning Tip Site? Request a Tip Now!


Guru Spotlight
George Sayour