Do you pay taxes on an inherited Roth IRA?

Generally, no — withdrawals from an inherited Roth IRA are tax-free, provided the original Roth IRA owner met the 5-year holding rule (the Roth IRA was opened at least 5 years before death). If the 5-year rule has not been met, earnings withdrawn before the 5-year period ends may be subject to income tax (but not the 10% early withdrawal penalty). Contributions can always be withdrawn tax-free from an inherited Roth IRA, even if the 5-year rule is not met. The 5-year period runs from the original owner's first contribution to any Roth IRA, not just the inherited account.

What is the 10-year rule for inherited Roth IRAs?

Under the SECURE Act (2019) and final IRS regulations (2024), most non-spouse beneficiaries who inherit a Roth IRA must withdraw all funds within 10 years of the original owner's death (by December 31 of the 10th year). There are no required minimum distributions (RMDs) within the 10-year period — you can take out as much or as little as you want each year, or nothing at all, as long as the account is fully distributed by year 10. Eligible designated beneficiaries (surviving spouses, minor children, disabled or chronically ill individuals, and those not more than 10 years younger than the deceased) have different — often more flexible — options.

Can a surviving spouse treat an inherited Roth IRA as their own?

Yes. A surviving spouse is the only beneficiary who can treat an inherited Roth IRA as their own — by rolling it over or transferring it into their own existing or new Roth IRA. Once treated as their own, the surviving spouse is no longer subject to the inherited IRA distribution rules. They can name their own beneficiaries, and they have no RMD requirement (original Roth IRA owners have no RMDs). The 5-year rule for the surviving spouse's own Roth IRA is measured from the date of their earliest Roth IRA contribution — not from the date of inheritance.

Do inherited Roth IRAs have required minimum distributions?

For the original owner: No. Roth IRA owners are never subject to RMDs during their lifetime. For non-spouse beneficiaries subject to the 10-year rule: No RMDs are required within the 10 years — but the entire account must be empty by December 31 of the 10th year after the owner's death. For eligible designated beneficiaries (spouse, minor child, disabled): They may be able to take annual distributions based on their own life expectancy (stretch IRA treatment) rather than the 10-year rule. Minor children switch to the 10-year rule once they reach the age of majority.

Inherited Roth IRA Rules 2026 — 10-Year Rule, Spouse Options & Tax-Free Withdrawals

Inheriting a Roth IRA is one of the best financial gifts to receive — withdrawals are typically tax-free, unlike inheriting a traditional IRA where every dollar withdrawn is taxed as ordinary income. However, the SECURE Act of 2019 and IRS final regulations issued in 2024 significantly changed the distribution rules for most inherited Roth IRAs. Most non-spouse beneficiaries must now withdraw all funds within 10 years of the original owner’s death. Surviving spouses have more flexible options, including treating the Roth IRA as their own.

Quick answer: Inherited Roth IRA withdrawals are tax-free (if 5-year rule met). Non-spouse beneficiaries: must empty account within 10 years, no annual RMDs required within that period. Surviving spouse: can treat it as their own Roth IRA (no 10-year rule). No RMDs for Roth IRA owners during lifetime. Best strategy: let the account grow tax-free as long as possible within the 10-year window.

Who Inherits Under Which Rules?

Non-Spouse Beneficiaries — The 10-Year Rule

Most beneficiaries fall into this category: adult children, siblings, friends, non-spousal partners, or trusts. Under the 10-year rule:

All funds must be distributed by December 31 of the 10th year after the year of the owner’s death
No annual RMDs are required within the 10 years — take out any amount at any time
The account grows tax-deferred (and all qualified withdrawals remain tax-free) during the 10-year period

Example: The original owner dies December 15, 2026. The 10-year deadline for the non-spouse beneficiary is December 31, 2036. Any withdrawal between now and then is tax-free (assuming the 5-year rule is met). The entire account must be withdrawn by December 31, 2036.

Eligible Designated Beneficiaries (EDBs) — Stretch Options

EDBs have the option to take annual life-expectancy distributions (“stretch IRA”) rather than using the 10-year rule:

Surviving spouse
Minor children of the deceased (until age of majority, then switches to 10-year rule)
Disabled individuals (under IRC Section 72(m)(7))
Chronically ill individuals
Beneficiaries not more than 10 years younger than the deceased (e.g., a sibling close in age)

EDBs who choose life expectancy distributions have the account spread over their lifetime — though the account must eventually be fully distributed.

Surviving Spouse — Best Option: Treat as Own

A surviving spouse can:

Treat the inherited Roth IRA as their own: Roll it into their own Roth IRA. No 10-year rule. No RMDs ever (Roth IRAs have no RMDs for owners). Name their own beneficiaries who then get a new 10-year window.
Open an inherited Roth IRA: Take annual life-expectancy distributions. This is usually less optimal unless the surviving spouse is much older than the deceased and needs flexibility.

Best practice: Most surviving spouses who do not need immediate income should roll the inherited Roth IRA into their own Roth IRA — preserving full tax-free growth with no distribution deadline.

The 5-Year Rule for Inherited Roth IRAs

For withdrawals to be completely tax-free from an inherited Roth IRA, the original owner’s 5-year rule must be satisfied:

5-year rule: The original owner must have had any Roth IRA open and funded for at least 5 tax years before their death.

If the original owner opened their first Roth IRA on January 1, 2020, the 5-year period ends January 1, 2025
If they died after January 1, 2025, ALL withdrawals from the inherited Roth IRA — earnings and contributions — are tax-free

If the 5-year rule is not met:

Contributions can still be withdrawn tax-free at any time
Earnings withdrawn before the 5-year period ends are subject to ordinary income tax (but not the 10% early withdrawal penalty, which does not apply to inherited IRAs)

The 5-year clock does NOT restart when the Roth IRA is inherited. The beneficiary inherits the original owner’s clock.

Inherited Roth IRA vs Inherited Traditional IRA: Key Difference

Feature	Inherited Roth IRA	Inherited Traditional IRA
Withdrawals taxed?	No (if 5-year rule met)	Yes — 100% ordinary income
10-year rule (non-spouse)	Yes	Yes
RMDs within 10 years	No	Yes (if owner died on/after RBD, per 2024 regs)
Annual RMDs for EDBs	Based on life expectancy	Based on life expectancy
Surviving spouse can treat as own?	Yes	Yes
Growth during 10-year period	Tax-free	Tax-deferred

The inherited Roth IRA’s tax-free withdrawals make it far more valuable to inherit than a traditional IRA of the same dollar amount.

Optimal Strategy for Non-Spouse Beneficiaries

Since no annual distributions are required within the 10-year window, the optimal strategy for maximising tax-free growth is generally:

Let the account grow for as long as possible — take no withdrawals until year 9 or 10
Take in year 10: Withdraw the full balance in the final year (or spread over years 9 and 10 to manage any state income tax considerations — some states tax Roth withdrawals differently)
Coordinate with other income: If withdrawals from other inherited IRAs or conversions in the same year add taxable income, the tax-free Roth withdrawal does not add to that burden

Note on potential RMDs: The 2024 IRS final regulations clarified that non-spouse beneficiaries whose original owner had reached the Required Beginning Date (RBD) for RMDs before death may need to take annual RMDs within the 10-year period (even for Roth IRAs that had no RMDs during the owner’s life). This remains a complex area — consult a tax advisor if the original owner died at an advanced age.

Roth IRA Withdrawal Rules — qualified vs non-qualified withdrawals
Roth IRA 5-Year Rule — which 5-year rule applies and when
Tax on Social Security Benefits — how to minimise combined income
Step-Up in Basis — how inherited taxable accounts avoid capital gains tax
Roth IRA Hub — all Roth IRA guides

Inheriting a Roth IRA is a genuine gift of tax-free growth — but the 10-year rule means thoughtful planning is needed. The best approach for most non-spouse beneficiaries is to let the account compound tax-free for as long as possible within the window, then withdraw all at once in year 10 (or spread over years 9 and 10) with no federal income tax consequences.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy