Hello sonya341,
Thank you for the question. I need some additional information please. In general, Qualified ROTH IRA distributions are not taxable and Non-Qualified ROTH IRA distributions can be taxable. To determine whether or not the distribution may be taxable, can you provide the answers to these questions:
- Were you the sole designated beneficiary on the ROTH IRA?
- Did you roll your brother's ROTH IRA to a beneficiary ROTH IRA?
- Was the entire ROTH IRA distributed to you in 2022?
Please answer these questions for clarification. However, If you take an immediate distribution from an inherited Roth IRA, the following applies:
- Distribution of all amounts except earnings: Tax Free and penalty free. These amounts are distributed first.
- Distributions of earnings. Penalty free. Taxable only if it has been less than 5-years since the Roth IRA owner funded the Roth IRA. You count the 5-year period from the owner- the beneficiary inherits the 5-year start date from the Roth IRA owner.
