Just in case, there actually is a very unlikely case where tax would be owed: if the person who died and left you the Roth had just recently opened and funded their very first Roth, then if you take out earnings before 5 years have passed from Jan 1 of that year, then the earnings do get taxed.
Eg. someone opens their very first Roth in 2020 and does a 100k Roth conversion. They die and you inherit the Roth, and today it has now tripled to 300k. If you take out 150k before 1/1/2025, then the first 100k is tax free, but the additional 50k is taxed.
Eg. someone opens their very first Roth in 2020 and does a 100k Roth conversion. They die and you inherit the Roth, and today it has now tripled to 300k. If you take out 150k before 1/1/2025, then the first 100k is tax free, but the additional 50k is taxed.
Statistics: Posted by bongo — Tue Jun 11, 2024 1:55 am — Replies 4 — Views 573