July 06, 2021
Do we take an RMD from a Roth?
Do we take an RMD from a Roth?
The answer is no, while you’re alive.
With the Roth IRA there are no Required Minimum Distributions while you’re alive.
However, due to the Secure Act, when someone inherits a Roth, they do have to take money out of the Roth within ten years. There wouldn’t be any tax, you just don’t get any more tax-free growth.
Roth is also not estate tax-exempt. While it is income tax-exempt, it is not estate tax-exempt.
Estate Attorney and Advisor Chris Berry of Castle Wealth Group answers questions on retirement and estate planning every Wednesday at 1pm. Register via this link or give our office a call at 844-885-4200.
Castle Wealth Group and Christopher Berry help families with estate planning, elder law, retirement planning, and tax planning from their offices in Brighton, Ann Arbor, Livonia, Bloomfield Hills, and Novi.
Castle Wealth Group helps families with their legal, financial, and tax planning for their retirement and legacy.
With the use of legal structures like revocable living trusts, Castle Trusts (asset protection trusts), Chris Berry and Castle Wealth Group can help your family plan, protect, and preserve what is important through their Retirement and Legacy Blueprint Process.
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Episode Transcript
Do we take an RMD from a Roth?
Welcome to Berry’s Bites please join our host attorney and financial advisor Chris Berry the answer is no.
While you’re live so with a Roth IRA there are no required minimum distributions while you’re live however due to the secure act that passed back in 2019 and became effective in 2020. When someone inherits a Roth they do have to take money out of the Roth within 10 years there wouldn’t be any tax you just don’t get any more tax-free growth and also remember with the Roth it is not a state tax-exempt so while it’s income tax exempt it’s not a state tax-exempt that’s where we might want to look at life insurance and irrevocable life insurance trust if you’re concerned about estate taxes.