EleanoreS
Employee Tax Expert

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@sfstevo   First, let me extend my condolences on the loss of your partner.  Second, let me commend you on the great job you did researching your concerns and getting answers!

 

1. Based on the fact pattern you stated, you would be considered to be an eligible designated beneficiary and can use your own life expectancy to calculate RMDs.

2. As to the timing of Roth vs Traditional IRA's that would depend on the other income on your return and the return the investment is earning.  As no deduction was received when funds were placed in a Roth account, they are not taxed when they are taken out.  Earnings on Roth accounts can also be taken out tax free if certain conditions are met.  The IRS considers a withdrawal to be qualified if you’ve had a Roth IRA for at least five years and the withdrawal is taken under one of these categories:

  • When you’re age 59½ or older
  • Because you have a permanent disability
  • By a beneficiary or your estate after your death
  • To buy, build, or rebuild your first home (a $10,000 lifetime maximum applies)

3. Account owners are responsible to calculate their RMD.  Generally, a RMD is calculated for each account by dividing the prior December 31 balance of that IRA or retirement plan account by a life expectancy factor that  the IRS publishes in tables in IRS Publication 590b .  Your custodian can certainly help with the process.  In the case of a 401K, the employer is responsible for calculating the RMD.

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