IRA's Only Please

[Guest David Hammond SRS]

Please note that I have edited and closed the thread pertaining to the

chain letter that appeared here this morning.

I will attempt to keep this reflector centered on IRA and IRA related topics. This is growing into a very active BBS and your participation is appreciated greatly.

Hope that you agree. Thanks to all.

Dave H.

[Guest bobert]

The beneficiary of a Roth IRA, which was converted from a tradiyional IRA in 1998, is a spouse, age 67. She or he dies in 2004 and her beneficirary is a daughter, age 41. Can the daughter maintain the inherited IRA as a Roth and withdraw funds, tax free, after age 59 1/2. And can the daughter's beneficiary maintain her inherited IRA as a Roth? ... and so on?

[This message has been edited by bobert (edited 02-02-99).]

[Guest DLevin]

I am assuming the owner of the Roth died and the spouse rolled it over to become her own Roth IRA. She named the daughter as her beneficiary. When she dies, the daughter can take the Roth IRA over the daughter's life expectancy, assuming she begins the distribution by Dec 31 of the year following the year of her mother's death. It does not matter that the daughter is not age 59 1/2, because taking distributions due to death are not subject to the 10% early withdrawal penalty. If the daughter wanted to wait until she was 59 1/2 and this occurred after the Dec 31 date noted above, the daughter would have to withdraw all funds from the Roth within 5 years of her mother's death. Again, these accelerated distributions will not be subject to the 10% penalty.