As the original owner of an IRA, or as the spousal beneficiary, do I ever have to take money out of my IRA?

  1. For a Regular IRA, you must start taking “required minimum distributions” for the year in which you turn age 70 ½.
  2. For a ROTH IRA, no distributions are required.
  3. The amount of your required minimum distribution is based upon your age, the age of your beneficiary, and the marital or non-marital relationship of your beneficiary.
    1. Your first Required Minimum Distribution will be less than 5% of your account balance
    2. See the following IRS publication for specific information about the amount of your Required Minimum Distribution: https://www.irs.gov/publications/p590b/index.html

I inherited an IRA, do I have to take money out of the IRA?

  1. If the decedent was required to take a distribution for the year of death and had not yet done so, that distribution must be made and is paid to the decedent’s estate. In other words, it cannot be rolled over under any circumstances.
  2. If you are a spousal beneficiary, you treat the IRA as if it was always yours.
    1. If a Roth IRA, then no distributions are required.
    2. If a regular IRA:
      1. If you have not reached your 70 ½ year, you need not take a distribution.
      2. If you are in your 70 ½ year or later, you must take a distribution based on your life expectancy in the year following the death of your spouse.
  3. If you are a non-spousal beneficiary, you cannot treat the IRA as your own nor roll it into your own IRA. It must be registered as an “inherited IRA.”
    1. Generally, you must begin to take a distribution in the year after the decedent’s death.
      1. EXCEPTION: If the original owner had died prior to taking a Required Minimum Distribution (RMD), you can delay any distribution until the December 31 of the 5th year anniversary of the decedent’s death AND in this instance, you must withdraw 100% of the inherited IRA.
    2. The amount of your required minimum annual distributions are determined by the age at the time of the IRA owner’s death: whether he or she dies before or after the year in which he or she would have taken an RMD