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#4
08-28-2005, 09:39 AM
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 Re: Roth IRA beneficiary - how much must they withdraw? David Jensen wrote: - quote - > "Paul" <TaxMan[at]negia.net> wrote:
The owner of a Roth IRA is not required to take any> > "David Jensen" <DJNews1[at]xxAssociates.net> wrote > > > I understand that a non-spouse beneficiary must either > > > withdraw Roth IRA funds within 5 years or in a series of > > > payments over the beneficiaries lifetime. Is that correct? > > Not for a ROTH, no minimum distributions are required. > > > Am I correct in assuming that if you choose to take > > > it out quicker, you can do so without penalty? > > ROTH distributions are, for the most part, tax free to > > you if the rules are followed. > > > Maybe you should seek the advice of a financial planner > > in this area. > Your statement here seems to contradict what I have read on > the web and the comment on this thread by Herb Smith. Can > you please help me reconcile the discrepancy? Perhaps I > didn't word my questions clearly or appropriately. distributions during his lifetime. A non-spouse beneficiary is required to make withdrawals, under the same rules that apply to Traditional IRAs. They may be tax-free (if the account was open five years prior to death), but are still required. It's all explained in Pub 590. << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#3
08-25-2005, 11:03 AM
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| Re: Roth IRA beneficiary - how much must they withdraw? "Paul" <TaxMan[at]negia.net> wrote: - quote - > "David Jensen" <DJNews1[at]xxAssociates.net> wrote
Your statement here seems to contradict what I have read on> > I understand that a non-spouse beneficiary must either > > withdraw Roth IRA funds within 5 years or in a series of > > payments over the beneficiaries lifetime. Is that correct? > Not for a ROTH, no minimum distributions are required. > > Am I correct in assuming that if you choose to take > > it out quicker, you can do so without penalty? > ROTH distributions are, for the most part, tax free to > you if the rules are followed. > Maybe you should seek the advice of a financial planner > in this area. the web and the comment on this thread by Herb Smith. Can you please help me reconcile the discrepancy? Perhaps I didn't word my questions clearly or appropriately. Thanks. -- David Jensen Change the xx in my email address to MJ for my real email address. Thanks. << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#2
08-25-2005, 11:03 AM
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| Re: Roth IRA beneficiary - how much must they withdraw? - quote - > > I understand that a non-spouse beneficiary must either
I think you missed the fact that we're talking about a> > withdraw Roth IRA funds within 5 years or in a series of > > payments over the beneficiaries lifetime. Is that correct? > Not for a ROTH, no minimum distributions are required. non-spouse beneficiary, who does face mandatory Roth withdrawals. -- Phil Marti Clarksburg, MD << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#1
08-23-2005, 04:16 AM
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| Re: Roth IRA beneficiary - how much must they withdraw? David Jensen wrote: - quote - > I understand that a non-spouse beneficiary must either
Mostly, although it is a series of payments over the "life> withdraw Roth IRA funds within 5 years or in a series of > payments over the beneficiaries lifetime. Is that correct? expectancy" of the beneficiary (not "lifetime"). - quote - > If so, how do you calculate the payments over one's lifetime?
See Table I in Pub 590 for the life expectancy factors touse. You divide the account balance (as of 12/31) by the appropriate factor for your age. - quote - > Also, what if, because of good investments, the account balance
You recalculate the distribution amount each year, based> grows in excess of the withdrawals. Do you have to recalculate > the amount to withdraw each year? on the account balance as of the previous Dec 31 and the new factor (for your age) in Table I. You do that whether the account increased or decreased due to investment conditions. - quote - > Am I correct in assuming
You can always take out more, but not less than the RMD amount.> that if you choose to take it out quicker, you can do so without > penalty? << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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08-23-2005, 03:54 AM
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| Re: Roth IRA beneficiary - how much must they withdraw? "David Jensen" <DJNews1[at]xxAssociates.net> wrote - quote - > I understand that a non-spouse beneficiary must either
Not for a ROTH, no minimum distributions are required.> withdraw Roth IRA funds within 5 years or in a series of > payments over the beneficiaries lifetime. Is that correct? - quote - > Am I correct in assuming that if you choose to take
ROTH distributions are, for the most part, tax free to> it out quicker, you can do so without penalty? you if the rules are followed. Maybe you should seek the advice of a financial planner in this area. -- Paul A. Thomas, CPA Athens, Georgia << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#-1
08-23-2005, 12:57 AM
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| Roth IRA beneficiary - how much must they withdraw? I understand that a non-spouse beneficiary must either withdraw Roth IRA funds within 5 years or in a series of payments over the beneficiaries lifetime. Is that correct? If so, how do you calculate the payments over one's lifetime? Also, what if, because of good investments, the account balance grows in excess of the withdrawals. Do you have to recalculate the amount to withdraw each year? Am I correct in assuming that if you choose to take it out quicker, you can do so without penalty? Thanks. -- David Jensen Change the xx in my email address to MJ for my real email address. Thanks. << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
| Tags |
| beneficiary, ira, roth, withdraw |
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