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roth ira non spouae beneficiary
Old 09-19-2017, 05:04 PM   #1
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roth ira non spouae beneficiary

I was thinking about making my son the beneficiary of my Roth Ira, he is 36 yrs old.

Will he have to start yearly withdrawals now or not until he is much older ?

I assume that it will still grow tax free and he could withdraw some or all as desired.
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Old 09-19-2017, 05:13 PM   #2
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Is this your roth? And you will make your son the beneficiary. Would that make it your son's roth upon your death? ... not when you state him as beneficiary.
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Old 09-19-2017, 07:30 PM   #3
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RMDs start once he inherits the Roth.........once you are gone .
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Old 09-19-2017, 08:26 PM   #4
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He will have to start taking RMDs when you die. The RMD amount will be based on his life expectancy when you die. The RMDs will be tax free income to him.
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Old 09-19-2017, 08:36 PM   #5
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If I use one of the rmd calculators, using age 38 then it indicates to withdrawals until age 70 ??
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Old 09-19-2017, 08:37 PM   #6
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typo, meant no replys until 70
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Old 09-19-2017, 09:12 PM   #7
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Originally Posted by bobbee25 View Post
If I use one of the rmd calculators, using age 38 then it indicates to withdrawals until age 70 ??
You need to find an rmd calculator for beneficiaries , not for owners.
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Old 09-19-2017, 09:43 PM   #8
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Or you can just use Table 1 at the IRS site:

https://www.irs.gov/publications/p59...link1000231236

For example, at age 38, the number is 45.6. So all your son would do is take the value of the account at the end of the year in which you die and divide it by 45.6.

Let's say, for example, that your Roth IRA had $150,000 in it at the end of the year in which you died. Dividing that by 45.6 means his first year RMD withdrawal would be $3,289.47.

The next year, you don't go back to the table, you just take the previous year's divisor and subtract 1. So his divisor the second year would be 44.6. Suppose the account grew to $160,000 at the end of that year. His second year RMD would be $3,587.44.
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Old 09-20-2017, 04:20 AM   #9
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So it would continue to grow tax free
He would have to take the min distribution annually
He could withdraw as much as he desired, tax free.
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Old 09-20-2017, 04:58 AM   #10
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My thought is that if I pass and my wife requires long term care, she would have a substantial amount with our standard IRA, bonds etc
If my son is the beneficiary of the roth, he could use it to support my wife as needed and it would be protected from any creditors.
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Old 09-21-2017, 10:19 AM   #11
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Not understanding your thinking. Depending on the state, an IRA may be well protected. What would happen if your son ran into financial difficulties and your wife subsequently needed long term care. If there is a chance your wife would need the money and there isn't going to be an inheritance tax issue, I would not take financial assets out of my wife's control...
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Old 09-21-2017, 10:27 AM   #12
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If my son is the beneficiary of the roth, he could use it to support my wife as needed and it would be protected from any creditors.
Compared to one's own IRA, an inherited IRA is relatively less protected from creditors.
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Old 09-21-2017, 10:50 AM   #13
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for your son to help your wife out, he may need to file gift tax returns to help you wife if the amounts were high enough and not for specific things that avoid gift tax limits.

now if you die and your son gets your roth, what happens if he pases?
What happens if you and your son pass at the same time?
What happens if he dies before you, but not long enough for you to make changes?
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Old 09-21-2017, 04:45 PM   #14
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Well I guess that just ruins my plan !
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Old 09-21-2017, 05:04 PM   #15
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Why not just leave it to your wife? I'm guessing there must be a reason.
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