Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

What are tax rules for an inherited Roth IRA, GA, the

What are tax rules...

What are tax rules for an inherited Roth IRA

Accountant's Assistant: Since estate law varies from place to place, can you tell me what state this is in?

GA

Accountant's Assistant: What documents or supporting evidence do you have?

The account documents

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

It is $3,000,000

Show More
Show Less
Ask Your Own Tax Question
Answered in 9 minutes by:
10/20/2017
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,349
Experience: Taxes, Immigration, Labor Relations
Verified

Distributions from Roth IRA are NOT taxable for beneficiaries as long as that IRA was established at least 5 years before distribution.

The 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for the owner's benefit.

When the distributions are made before the end of the applicable 5-year period for a qualified distribution, each beneficiary includes a part of distribution attributable to earning $500 into taxable income. The 10% additional tax on early distributions does not apply because the distribution was made to the beneficiaries as a result of the death of the IRA owner.

Ask Your Own Tax Question

RMD - required minimum distributions are established for Roth IRA the same way as for traditional IRA.

If a Roth IRA owner dies, the minimum distribution rules that apply to traditional IRAs apply to Roth IRAs as though the Roth IRA owner died before his or her required beginning date.

Generally, the entire interest in the Roth IRA must be distributed by the end of the fifth calendar year after the year of the owner's death unless the interest is payable to a designated beneficiary over the life or life expectancy of the designated beneficiary.

If the sole beneficiary is the spouse, he or she can either delay distributions until the decedent would have reached age 70 1/2 or treat the Roth IRA as his or her own.

Let me know if you need any help with reporting.

Ask Your Own Tax Question
Customer reply replied 10 months ago
What is more valuable if inherited:
a regular stock portfolio or a portfolio within a Roth IRA?

For some reason you provided negative rating that affect my performance badly...

I think I provided a complete and detailed answer and are open for additional questions.

Please reconsider your rating.

Ask Your Own Tax Question
Customer reply replied 10 months ago
what about my question ???

At the time of inheritance - there is no difference stock portfolio in a regular investment account and within a Roth IRA because Roth IRA distributions are not taxable and inherited assets get stepped up basis.

But if we are looking to keep investment portfolio - at least for some time - you may continue investing inside Roth IRA and still have additional investment income tax free - that would make Roth IRA more valuable.

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,349
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 10 months ago
Thank you good information
I’ll change rating
Customer reply replied 9 months ago
Can a Roth IRA be funded with stocks from a regular investment portfolio?

That is not allowed to contribute assets into either traditional or Roth IRA.
You will need to sell shares and contribute the money.

Ask Your Own Tax Question
Customer reply replied 9 months ago
thanks
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,349
33,349 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Received an inherited IRA in 2017 from deceased sister.
Received an inherited IRA in 2017 from deceased sister. $8400 plus $1300 interest. Didn't realize or know anything about IRAs until I started preparing my tax. My sister was 68 years 20 months when sh… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Lane, I asked you a question about the taxable amount on a
Lane,I asked you a question about the taxable amount on a 1099-R. I just wanted to send you a screenshot to make sure I got it right. I am only picking up 1,192.50 even though the taxable amount is sh… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have a beneficiary Roth IRA from my mother. I made a
I have a beneficiary Roth IRA from my mother. I made a withdraw. during 2017. My 1099-R shows a distribution code T. Why am I being taxed on the amount? … read more
abci168
abci168
Principal
27 satisfied customers
I have an inherited ira account and ira roth, both from my
hi, i have an inherited ira account and ira roth , both from my father but now in my name and about ready to make a RMD in december of this year. Would the RMD be from the total of both accounts or ju… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I am in the process of setting up a trust for my grandchild.
I am in the process of setting up a trust for my grandchild. I currently have a Roth IRA. My wife is the first beneficiary, while this trust will be the contingent beneficiary. If I die first she will… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
How much of the Roth IRA distribution is taxable income? Decedent
How much of the Roth IRA distribution is taxable income? Decedent started Roth IRA in December of 2010 which was presumably a Roth conversion with $100000 cash and $167,000 in securities. After the Ro… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,684 satisfied customers
As Beneficiary of my of my sisterss IRA I received a Total
As Beneficiary of my of my sisters's IRA I received a Total distribution. Is the full amount taxable? What is th.e best way for me to handle this. She was 75 years old, I am 80 years old and file MFJ … read more
abci168
abci168
Principal
27 satisfied customers
I recently inherited a roth IRA and a sep IRA. The company
I recently inherited a roth IRA and a sep IRA. The company that holds these IRA's is asking me to set up a inherited roth and inherited sep IRA but having that many IRA accounts doesn't make sense to … read more
DanielleCPA
DanielleCPA
Certified Public Accountant
Bachelor's Degree
76 satisfied customers
I am 58 with an inherited IRA Roth from my Dad. I need to
Hi. I am 58 with an inherited IRA Roth from my Dad. I need to withdraw $30K to buy a house. Can I retitle the Roth for this purpose. Otherwise, what would my 2012 taxes be for withdrawing $145K from a… read more
WebCPA
WebCPA
Manager
Bachelor's Degree
62 satisfied customers
My daughter has dual Dutch and USA citizenship. She lives
My daughter has dual Dutch and USA citizenship. She lives and works in the Netherlands. As a beneficiary of my Roth and tax-deferred IRAs, is it more beneficial for her, in regard to Dutch taxation, t… read more
socrateaser
socrateaser
1,031 satisfied customers
My mom is 84 and has a traditional IRA. Mom has sufficient
My mom is 84 and has a traditional IRA. Mom has sufficient income and doesn't need the mandatory disbursements. Does it make sense to convert the IRA to a Roth? If we split the tax payment and she die… read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
2,885 satisfied customers
my mother passed away on jan 4th she had an ira not a roth.
my mother passed away on jan 4th she had an ira not a roth. the ira was beneficaried by my mom prior to her death. is this taxable income or is it considered inheritance and not taxable… read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
Hello,We are attempting to have answers to a couple of questions.
Hello, We are attempting to have answers to a couple of questions. I do have an accounting background but not updated the past 20 years or so. I have about $600,000+ in a traditional IRA, and I am 69 … read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,349 satisfied customers
I inherited a Roth IRA from my aunt in 2009 along with my brother
I inherited a Roth IRA from my aunt in 2009 along with my brother and sister. The account was held at Morgan Stanley. We opened inherited Roth IRAs at Morgan Stanley and each had our third of my aunt'… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
I inherited a roth IRA when my mother passed away. I have been
I inherited a roth IRA when my mother passed away. I have been taking the minimum requited distribution for the past 2 years. With the current market conditions the IRA is valued at less than it was w… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
I INHERITED A ROTH IRA ON JUNE 1ST 2006, DO I HAVE ANY ...
I INHERITED A ROTH IRA ON JUNE 1ST 2006, DO I HAVE ANY INCOME TAX ISSUES WITH THIS ? &nbs p; THANKS, &nbs p; JOHN O. DENNIS… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,349 satisfied customers
I inherited a Roth IRA that had a basis to the decedent of ...
I inherited a Roth IRA that had a basis to the decedent of $60,000. The amount that I inherited was only $22,000. Can I take the loss on the difference?… read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
2,885 satisfied customers
The beneficiary of an IRA Roth is the trust fund for the surviving chi ...
The beneficiary of an IRA Roth is the living trust fund for the survivng children. Will the children be taxed highly on the Ira Roth transfer into the trust? Perhaps it would be better to change the n… read more
Christopher Phelps
Christopher Phelps
Sole Practitioner
Master Degree
1,180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x