What are the distribution requirements applicable to a Roth IRA after the owners death?
A. Roth IRA distributions are tax free if the payment is made on account of death, disability or the purchase of a home by a qualified first-time home buyer (limit of $10,000). However, if the distribution is made before the five-year holding period has been satisfied, then it will be subject to tax to the extent that the distributions cumulatively exceed contributions. These distributions will not be subject to the 10% penalty tax. Following the death of the owner of the Roth IRA, if the beneficiary is an individual, then distributions to the beneficiary must begin within a year after the owner’s death. The distributions can be spread over the beneficiary’s life expectancy. If the beneficiary is the owner’s spouse, there is some uncertainty whether the spouse must begin taking distributions within a year of the owner’s death, but it is clear that the spouse-beneficiary can roll over the decedent’s Roth IRA into the spouse’s own Roth IRA. If the spouse-beneficiary rolls over the inheri
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