Do I need to pay taxes on an inherited Roth IRA?

[malibujohnny]

Hi all,

I inherited a Roth IRA last year (Feb. 2022) after my father passed away and I'm wonder if I have to pay any taxes on it.  I know you have to pay taxes when you put money into a Roth IRA but I'm not sure what happens when you inherit one.  So, my questions are:

1) Is there any sort of inheritance tax (or other tax) I need to pay?

2) If I do need to pay taxes on it, how do I report it in turbo tax?

Thank you in advance for any help.

[MinhT1 · Accepted solution]

1. You do not pay tax on inheritance. So there is no tax due when you inherit a Roth IRA account.

2. Withdrawals of contributions from an inherited Roth are tax free. Most withdrawals of earnings from an inherited Roth IRA account are also tax-free. However, withdrawals of earnings may be subject to income tax if the Roth account is less than 5-years old at the time of the withdrawal.

Please read this IRS document for more information.