Inherited Roth Ira Rmd Calculator

Navigating the world of inherited retirement accounts can be overwhelming, especially when it comes to understanding required minimum distributions (RMDs) for an Inherited Roth IRA. To make this easier, we’ve built a free Inherited Roth IRA Calculator—a simple yet powerful tool to help you determine your potential RMDs based on key personal details and current IRS rules.

Whether you’re a spouse, child, grandchild, or another non-spouse beneficiary, the distribution rules vary significantly. Our calculator quickly generates an RMD estimate, explains your distribution options, and outlines important compliance deadlines under the SECURE Act and other IRS regulations.

How to Use the Inherited Roth IRA Calculator

Using the calculator is straightforward. Just follow these steps:

Step 1: Enter the Beneficiary’s Age

This is your current age as the individual who inherited the Roth IRA.

Step 2: Select Your Relationship to the Original Account Owner

Choose one of the following:

  • Spouse
  • Child
  • Grandchild
  • Other Non-Spouse

Step 3: Enter the Current Value of the Inherited Roth IRA

Input the total dollar amount of the account at its current value.

Step 4: Enter the Year the Account Was Inherited

This is usually the year following the original owner’s death.

Step 5: Provide the Original Owner’s Date of Death

This is critical for determining whether SECURE Act rules apply.

Step 6: Click “Calculate”

Your estimated RMD, distribution period, and any relevant notes will display instantly.

Practical Example: Adult Child Inheriting a Roth IRA After 2020

Let’s say you’re a 40-year-old child who inherited a $100,000 Roth IRA in 2023 after your parent passed away. After inputting your information, the calculator determines:

  • Distribution Period: 10-Year Rule
  • Estimated RMD: No annual RMDs required
  • Distribution Deadline: December 31, 2033
  • Notes: Full distribution required by year 10; no taxes on qualified distributions

This helps you plan tax-efficient withdrawals, or defer withdrawals if your current tax bracket is high.

Why This Calculator Matters

Inherited Roth IRAs come with different distribution rules depending on the beneficiary type and the date of the original account owner’s death. The SECURE Act of 2020 significantly changed the landscape:

  • Many non-spouse beneficiaries must now deplete the account within 10 years.
  • Spouses and eligible designated beneficiaries (such as minor children, disabled individuals, and those not more than 10 years younger than the deceased) may use the life expectancy method.

Understanding these distinctions is essential to avoiding penalties, making informed financial decisions, and preserving tax advantages.

Key Features of the Inherited Roth IRA Calculator

  • ✅ Tailored to beneficiary type (spouse, child, etc.)
  • ✅ Adapts to inheritance year (pre- or post-SECURE Act)
  • ✅ Offers both RMD estimates and distribution timelines
  • ✅ Explains key rules and provides a sample withdrawal schedule
  • ✅ Helps avoid costly IRS penalties

Extra Helpful Information and Use Cases

💼 Tax Planning

While RMDs from Roth IRAs are tax-free if qualified, knowing when and how much you must withdraw can prevent unintentional non-compliance.

👨‍👩‍👧‍👦 Estate Planning

This tool is valuable for advisors and family members organizing long-term retirement wealth transfers.

📅 Compliance Awareness

For non-spouse beneficiaries, failing to distribute the account by the 10th year after the owner’s death can result in a 50% penalty on any remaining balance.

Frequently Asked Questions (FAQs)

1. Do I have to take RMDs from an inherited Roth IRA?

Yes, if you’re a non-spouse beneficiary. While Roth IRAs don’t require RMDs during the original owner’s lifetime, inherited Roth IRAs typically do under the SECURE Act.

2. What is the 10-year rule?

It requires non-spouse beneficiaries to withdraw the entire account within 10 years after the account owner’s death, starting from January 1 following their death.

3. Are RMDs from a Roth IRA taxable?

No, qualified distributions from Roth IRAs are generally tax-free.

4. What if I inherited the Roth IRA before 2020?

Pre-2020 inheritances fall under older rules, allowing annual RMDs over your life expectancy.

5. I’m a spouse. Do I need to take RMDs?

Spouses have more flexibility and can treat the Roth IRA as their own, potentially avoiding RMDs entirely.

6. Can I defer withdrawals until the 10th year?

Yes, under the 10-year rule, you can wait until the end of the 10th year to withdraw everything.

7. What’s the life expectancy rule?

Eligible designated beneficiaries can stretch distributions over their life expectancy, spreading out tax-free growth and withdrawals.

8. Does age matter when inheriting a Roth IRA?

Yes. Your age influences life expectancy calculations and may qualify you for different distribution options.

9. What happens if I miss an RMD deadline?

You could face a 50% penalty on the amount not withdrawn.

10. Can I convert an inherited Roth IRA into my own?

Only spouses can do this. Others must keep the account titled as an “inherited Roth IRA.”

11. Do minor children have different rules?

Yes. Minor children may use the life expectancy method until they reach the age of majority, then follow the 10-year rule.

12. Are distributions prorated annually under the 10-year rule?

No, you can take any amount at any time, as long as the account is empty by the end of the 10th year.

13. Is there a required minimum distribution if I’m over 70 and inherit a Roth IRA?

Yes, if you’re not a spouse, you’re still subject to the 10-year rule unless you qualify as an eligible beneficiary.

14. Can I contribute to an inherited Roth IRA?

No. Contributions can’t be made to inherited IRAs.

15. Does the IRS provide life expectancy tables?

Yes. These tables are used to calculate annual RMDs for eligible beneficiaries.

16. Can I take more than the RMD?

Absolutely. RMDs are a minimum—you can withdraw more if needed.

17. What if the account holder died before taking their first RMD?

If it was a traditional IRA, special rules would apply. For Roth IRAs, there’s no impact since RMDs weren’t required during the owner’s lifetime.

18. Will I owe state taxes on Roth RMDs?

Typically no, but it depends on your state’s tax laws. Always consult a tax advisor.

19. What if I inherit multiple Roth IRAs?

You must calculate and take distributions from each account separately, unless they are consolidated correctly.

20. Is professional guidance recommended?

Yes. A financial advisor can help tailor a withdrawal strategy aligned with your goals, tax situation, and legal responsibilities.

Final Thoughts

The Inherited Roth IRA Calculator takes the guesswork out of managing an inherited retirement account. With evolving tax laws and penalties for missteps, having a clear, reliable estimate of your RMD obligations is crucial. Whether you’re a beneficiary or advisor, this tool is an essential resource for financial clarity and compliance.

👉 [Try the Calculator Now on Our Website] and take control of your inherited Roth IRA strategy with confidence.