@markncgolf wrote:
Since my wife Amy had not reached the age of 59 /1 2 at the time of the Roth distribution in 2020, I believe the distribution in excess of the basis is taxable. The Roth is considered a beneficiary Roth.
Thanks
Your age is immaterial. There is never any penalty on an inherited IRA.
IRS Pub 590B
https://www.irs.gov/publications/p590b#en_US_2019_publink1000231069
Other early distributions.
Unless one of the exceptions listed below applies, you must pay the 10% additional tax on the taxable part of any distributions that aren't qualified distributions.
Exceptions.
You may not have to pay the 10% additional tax in the following situations.
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You have reached age 59½.
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You are totally and permanently disabled.
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You are the beneficiary of a deceased IRA owner.
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You use the distribution to buy, build, or rebuild a first home.
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The distributions are part of a series of substantially equal payments.
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You have unreimbursed medical expenses that are more than 7.5% of your adjusted gross income (defined earlier) for the year.
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You are paying medical insurance premiums during a period of unemployment.
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The distributions aren't more than your qualified higher education expenses.
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The distribution is due to an IRS levy of the qualified plan.
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The distribution is a qualified reservist distribution.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
