How Does the 5-Year Rule for Roth Withdrawals Apply to Inherited Roth IRAs?

Free download: 5 Year Rules for Roth IRA Withdrawals: https://purefinancial.com/white-paper... Schedule a free assessment with an experienced financial professional: http://bit.ly/PureAssessment Office locations: https://bit.ly/PureLocations Ask Joe & Big Al On Air: https://bit.ly/AskJoeAndBigAl Subscribe: http://bit.ly/YMYW-YT Follow the YMYW podcast: https://lnk.to/ymyw Question: "Don’t groan, Joe . . . this question is about the 5-year rule! Can you explain how the 5-year rule applies to inherited Roth IRAs? The Roth IRA was established in 2020 with a conversion. The owner had never had a Roth IRA prior to this. The owner died in 2022 and this Roth IRA was inherited by his wife. She, also, never had a Roth IRA until this inheritance in 2022. Does the 5-year count start again in 2022? In the event of her death, this Roth IRA will be passed down to 5 beneficiaries: 3 of whom are over 59 1/2, and 2 of whom are younger. Just for argument sake, let's assume she dies in 2024; how would the 5-year rule affect the 5 beneficiaries? Thank you so much." (Karen, TX) Pure Financial Advisors, LLC is a fee-only Registered Investment Advisor providing comprehensive retirement planning services and tax-optimized investment management to thousands of people across the nation. IMPORTANT DISCLOSURES: • Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC, a Registered Investment Advisor. • Pure Financial Advisors LLC does not offer tax or legal advice. Consult with your tax advisor or attorney regarding specific situations. • Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. • Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. • All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. As rules and regulations change, content may become outdated. • Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors. CFP® - The CERTIFIED FINANCIAL PLANNER® certification is by the CFP Board of Standards, Inc. To attain the right to use the CFP® mark, an individual must satisfactorily fulfill education, experience and ethics requirements as well as pass a comprehensive exam. 30 hours of continuing education is required every 2 years to maintain the certification. AIF® - Accredited Investment Fiduciary designation is administered by the Center for Fiduciary Studies fi360. To receive the AIF Designation, an individual must meet prerequisite criteria, complete a training program, and pass a comprehensive examination. Six hours of continuing education is required annually to maintain the designation. CPA – Certified Public Accountant is a license set by the American Institute of Certified Public Accountants and administered by the National Association of State Boards of Accountancy. Eligibility to sit for the Uniform CPA Exam is determined by individual State Boards of Accountancy. Typically, the requirement is a U.S. bachelor’s degree which includes a minimum number of qualifying credit hours in accounting and business administration with an additional one-year study. All CPA candidates must pass the Uniform CPA Examination to qualify for a CPA certificate and license (i.e., permit to practice) to practice public accounting. CPAs are required to take continuing education courses to renew their license, and most states require CPAs to complete an ethics course during every renewal period. #RothIRA #retirement #5yearrules