You've probably heard the rumors that the IRS finally backed off on some of its retirement rules. It's true. Mostly. If you’re sitting on a Roth IRA that you built yourself, you can breathe. The short answer is no—do Roth IRA's required minimum distributions (RMDs) apply to the original owner? Absolutely not. You can leave that money in there until you're 105 if you want to. It just sits there, compounding, tax-free, like a quiet little engine.
But there is a "but." There is always a "but" with the IRS.
While you're alive, the Roth IRA is your fortress. However, the second that account passes to someone else, the rules do a complete 180. If you’ve inherited one lately—or you’re planning your estate—you need to understand that the "no RMD" rule is a lifetime privilege, not a permanent characteristic of the account itself.
The SECURE Act 2.0 Plot Twist
Things changed significantly in late 2022 when the SECURE Act 2.0 was signed into law. Before this, there was a weird, annoying discrepancy. If you had a Roth IRA, you had no RMDs. But if you had a Roth 401(k) through your job, the IRS actually forced you to take money out once you hit 73. It was a massive headache that drove people to roll their workplace plans into IRAs just to avoid the paperwork.
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Thankfully, as of 2024, that’s gone.
Now, Roth 401(k)s and Roth 403(b)s follow the same "no RMD" rule for the original owner as the Roth IRA. If you’re still working or just retired and holding onto a Roth 401(k), you don’t have to touch it. It’s a huge win for simplicity.
When the Rules Get Aggressive: Inherited Roth IRAs
Here is where the coffee kicks in and you need to pay attention. Inherited Roth IRAs are a different beast entirely. Even though the money was tax-free for the original owner, the IRS doesn't want it staying tax-free forever for the next generation. They want that money out of the tax-advantaged wrapper and back into the taxable world.
The 10-Year Rule
If you aren't the spouse of the person who died, you're likely looking at the 10-Year Rule. Basically, you have to empty the entire account by December 31st of the 10th year following the owner’s death.
The "kinda" good news? For a Roth IRA, you generally don't have to take a specific amount every single year during that decade. You could take nothing in years one through nine and then drain the whole thing in year ten. Since it’s a Roth, the distributions are usually tax-free anyway (assuming the account was open for five years), so there’s no massive tax bill waiting at the end. You’re just losing the benefit of that tax-free growth.
The Spouse Exception
Spouses still have the best seat in the house. If you inherit a Roth IRA from your partner, you can usually treat it as your own. You just rename the account, and suddenly, you are the "original owner." Presto: do Roth IRA's required minimum distributions disappear for you? Yes. You can keep it until you die.
The "Eligible Designated Beneficiary"
There’s a small group of people who don't have to follow the 10-year rule. These are "Eligible Designated Beneficiaries" (EDBs). If you fall into one of these buckets, you can "stretch" the distributions over your own life expectancy:
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- People who are chronically ill or disabled.
- Minor children of the account owner (though once they hit 21, the 10-year clock starts ticking).
- Individuals who are not more than 10 years younger than the deceased owner (like a sibling close in age).
Why This Actually Matters for Your Wallet
Honestly, the biggest mistake people make is thinking that because there are no RMDs, they should just ignore the account. But if you're the owner, the lack of RMDs makes the Roth IRA the ultimate "last resort" fund.
If you have a Traditional IRA and a Roth IRA, you should almost always pull from the Traditional one first. Why? Because the Traditional IRA forces you to take money out (at age 73 or 75, depending on your birth year) and taxes you on every cent. By letting the Roth sit untouched, you’re maximizing the amount of money that can grow without the government taking a cut.
Expert Note: If you were born between 1951 and 1959, your RMD age for Traditional accounts is 73. If you were born in 1960 or later, it’s 75. But again, for your own Roth IRA, these ages are irrelevant.
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Watch Out for the "Five-Year Rule"
Even though there’s no RMD, there is a trap called the Five-Year Rule. To get the earnings out tax-free, the Roth IRA must have been open for at least five years. This clock starts on January 1st of the year you made your first contribution. If you open a Roth at age 72 and die at 74, your heirs might have to pay taxes on the earnings (not the contributions) if they take the money out before that five-year mark is hit.
It's a subtle point, but it can bite you if you're doing late-in-life Roth conversions.
Actionable Steps to Take Right Now
- Check Your Beneficiaries: Since the rules for spouses, kids, and siblings are all different, make sure your "Primary" and "Contingent" beneficiaries are up to date. A mistake here can force your heirs to drain the account in 5 years instead of 10.
- Coordinate with Traditional RMDs: If you’re over 73, make sure you’re taking your RMDs from your Traditional IRAs. You cannot use a Roth distribution to satisfy a Traditional IRA RMD. They are separate silos.
- Consider "Spousal Rollover": If you’ve inherited a Roth from a spouse, make sure you’ve actually moved it into your name. If it stays as an "Inherited" account, you might be stuck with RMD rules you could have otherwise avoided.
- Audit Your 401(k): If you have a Roth 401(k) from an old job, check if the plan has updated its software to reflect the 2024 changes. Some older systems still try to trigger RMDs automatically.
The beauty of the Roth is the lack of strings attached while you're alive. Keep it that way by staying on top of the beneficiary paperwork so the IRS doesn't get a reason to step in.