You focus on staying alive. We'll focus on passing your IRA benefits directly to your named beneficiaries (without being subject to the estate probate process) in the unfortunate event of your death.
While not fun to talk about, it's important to be prepared, so we're here if you'd like to ask any specific questions 847.576.5199 or toll-free at 877.270.6392.
Here are some specific Roth IRA terms to be aware of:
- If you have designated a beneficiary, then distributions must begin starting at least one year from the date of your death.
- Annual distributions must be made in an amount not less than the Roth IRA account balance multiplied by a fraction with one as the numerator and your beneficiary's life expectancy as the denominator.
A little complex, we know, but the IRS makes the rules. If you have not designated a beneficiary, distributions must be completed within five years. If your primary beneficiary is your spouse, they're given the added option of either assuming your Roth IRA or rolling it over to a Roth IRA in their name. The amount in your Roth IRA when you die may be subject to estate tax if your estate, including the remaining amount in the Roth IRA, is significant. Your tax advisor can help you determine what "significant" means.