Be Careful When Passing Down a Roth IRA

Overview


Bobbi Bierhals explained the tax advantages of income from inherited Roth IRAs, noting that “you can potentially stretch that income tax-free growth for 50, 60 or even 70 years.” Ms. Bierhals added that any trust used to pass on a Roth IRA must use very particular terms because “if you do it wrong, the IRS can cause you to distribute the entire IRA within five years.”