Roth IRAs do not require you to take distributions during your lifetime

A Roth IRA has no required minimum distribution (RMD) while you are alive. This is one of the largest differences between a Roth IRA and a traditional IRA. With a traditional IRA, you must start taking distributions the year you turn 73 (as of 2023; this age changes based on federal law). With a Roth IRA, you can leave the money untouched for as long as you live.

This applies only to the account owner. If you inherit a Roth IRA from someone else, different rules apply to you as the beneficiary — those are covered below.

The no-RMD rule is one reason people use Roth IRAs as part of long-term wealth building. You are not forced to withdraw money and pay taxes on it. You can let the account grow tax-free for decades if you choose.

Key Takeaways

  • You do not have to take any distributions from your own Roth IRA at any age during your lifetime.
  • Beneficiaries who inherit a Roth IRA must take distributions, but the timeline depends on when you died and who inherits it.
  • Spouses who inherit a Roth IRA can treat it as their own and avoid distributions during their lifetime.
  • Non-spouse beneficiaries must empty the account within 10 years of the account owner's death, though the exact withdrawal schedule depends on the year of death.

What happens to a Roth IRA after the owner dies

When a Roth IRA owner dies, the account does not disappear. It passes to whoever is named as the beneficiary on the account. The beneficiary then becomes responsible for the account and must follow distribution rules — even though the original owner did not have to take distributions.

The rules for the beneficiary depend on two things: who the beneficiary is (spouse or non-spouse) and when the account owner died. The rules changed in 2020 and again in 2023, so the year of death matters.

You should name a beneficiary on your Roth IRA account now. If you do not name one, the account goes through your estate, which can create delays and tax complications for whoever eventually receives it.

If your spouse inherits your Roth IRA

A surviving spouse has the most flexibility. The spouse can treat the inherited Roth IRA as their own by retitling it in their name. Once they do this, they are treated as the account owner, not a beneficiary. This means they have no required distributions during their lifetime — the same rule that applied to the original owner.

Alternatively, a spouse can keep the account in the deceased spouse's name and take distributions as a beneficiary. This is less common because it offers fewer advantages, but some people do it to keep the account separate for estate planning reasons.

The choice between these two options should be made carefully, ideally with a tax professional, because it affects how the account grows and what happens when the surviving spouse eventually dies.

If a non-spouse inherits your Roth IRA

Non-spouse beneficiaries — adult children, grandchildren, friends, or anyone else who is not the surviving spouse — face stricter rules. As of 2023, the SECURE 2.0 Act requires most non-spouse beneficiaries to withdraw all funds from an inherited Roth IRA within 10 years of the account owner's death.

The beneficiary does not have to take equal amounts each year. They can take nothing for nine years and then withdraw everything in year 10, or spread it out however they want. The only requirement is that the account is empty by the end of year 10. The exact deadline is December 31 of the tenth year following the year of death.

There is one exception: if the beneficiary is a minor child of the account owner, a disabled person, or a chronically ill person, they may have different options. These exceptions are narrow and have specific legal definitions. A tax professional can tell you whether they apply.

Why the difference between Roth and traditional IRA rules

The federal government taxes traditional IRA withdrawals as ordinary income. Because of this, the government wants to ensure that money eventually comes out and gets taxed. That is why traditional IRAs have required minimum distributions starting at age 73.

Roth IRAs are funded with after-tax money, and withdrawals are tax-free. The government has already collected tax on the money going in, so it has less reason to force withdrawals. This is why Roth IRAs have no RMD during the owner's lifetime.

After death, beneficiaries do face distribution rules because the account will eventually need to be settled and closed. But the rules are more flexible than they are for traditional IRAs, especially for spouses.

Planning around Roth IRA distributions

Because you do not have to take distributions from your own Roth IRA, you can use it as a long-term savings tool. If you have other sources of retirement income — Social Security, a pension, a 401(k) — you can leave your Roth IRA untouched and let it grow. This can be a powerful strategy if you do not need the money right away.

If you do need money in retirement, you can withdraw from your Roth IRA whenever you want. Withdrawals of contributions (the money you put in) come out tax-free and penalty-free at any age. Withdrawals of earnings (the growth) are tax-free and penalty-free if you meet certain conditions, mainly that the account has been open for at least five years and you are age 59½ or older.

Because beneficiaries will eventually have to take distributions, naming a beneficiary and thinking about who that person is matters. A spouse can avoid distributions. A child or grandchild will need to plan for withdrawals over a 10-year window.

Frequently Asked Questions

Can I take money out of my Roth IRA before I turn 59½?

You can withdraw your contributions (the money you deposited) at any age without penalty. Withdrawals of earnings are subject to a 10% penalty before age 59½, unless you meet a narrow exception like disability, first-time home purchase, or may have access to education expenses. The five-year rule still applies to earnings.

What if I have both a Roth IRA and a traditional IRA?

You do not have to take distributions from your Roth IRA, but you do have to take them from your traditional IRA starting at age 73. The two accounts are separate for RMD purposes. You cannot skip your traditional IRA distribution by taking money from your Roth instead.

Do I have to tell the IRS that I am not taking distributions from my Roth?

No. You do not file anything or notify anyone. The absence of a distribution is not reported. Just keep your account open and leave it alone if that is your plan.

What if I want to leave my Roth IRA to charity instead of a person?

You can name a charity as the beneficiary of your Roth IRA. The charity receives the funds tax-free. This can be an effective way to give to charity while keeping other assets for your heirs. Consult a tax professional about whether this fits your overall plan.