Not a tax expert. If anything below is incorrect, hopefully another poster such as Alan S. will correct me.
1) Were these your father’s IRAs or did he inherit these IRAs?
2) Had he reached his beginning RMD age?
3) If he was taking RMDs, did he take his RMD in 2024?
4) Are you a non-eligible designated beneficiary (non-EDB) as defined by SECURE Act 2.0 regulations?
There is no need to take an annual RMD from the Roth IRA. You must fully empty the account by 12/31/34. If your father’s Roth IRA was not qualified, you have to complete the 5-year holding period until qualified so any earnings distributed are tax free. There is an exception to this which Alan S. explained in a thread I started linked below if the inherited Roth IRA came from a 401k:
viewtopic.php?p=8191187#p8191187
If you are a non-EDB and your father took his 2024 RMD, there was no requirement for you to take any RMD in 2024 for the inherited traditional IRA. If he did not take his 2024 RMD, you/any other beneficiaries were required to do so. You will have to take annual RMDs for 2025+ and fully empty the account by 12/31/34.
As far as the 2025 RMD shown by the brokerage, they don’t necessarily calculate this specifically to your circumstances. So the RMD they show may not be correct for you. Per the linked thread, I ran into this with Fidelity (incorrectly) showing my inherited Roth IRA has a 2025 RMD because their RMD center’s calculation is based on pre-SECURE Act rules.
1) Were these your father’s IRAs or did he inherit these IRAs?
2) Had he reached his beginning RMD age?
3) If he was taking RMDs, did he take his RMD in 2024?
4) Are you a non-eligible designated beneficiary (non-EDB) as defined by SECURE Act 2.0 regulations?
There is no need to take an annual RMD from the Roth IRA. You must fully empty the account by 12/31/34. If your father’s Roth IRA was not qualified, you have to complete the 5-year holding period until qualified so any earnings distributed are tax free. There is an exception to this which Alan S. explained in a thread I started linked below if the inherited Roth IRA came from a 401k:
viewtopic.php?p=8191187#p8191187
If you are a non-EDB and your father took his 2024 RMD, there was no requirement for you to take any RMD in 2024 for the inherited traditional IRA. If he did not take his 2024 RMD, you/any other beneficiaries were required to do so. You will have to take annual RMDs for 2025+ and fully empty the account by 12/31/34.
As far as the 2025 RMD shown by the brokerage, they don’t necessarily calculate this specifically to your circumstances. So the RMD they show may not be correct for you. Per the linked thread, I ran into this with Fidelity (incorrectly) showing my inherited Roth IRA has a 2025 RMD because their RMD center’s calculation is based on pre-SECURE Act rules.
Statistics: Posted by HomeStretch — Mon Jan 20, 2025 7:39 pm — Replies 1 — Views 112