No Required Minimum Distributions During Your Lifetime

You do not have to take money out of a Roth IRA while you are alive, no matter how old you are. The Required Minimum Distribution (RMD) rules that force withdrawals from traditional IRAs at age 73 do not apply to Roth IRAs. You can leave the money in the account to grow tax-free for as long as you want.

This is one of the main reasons people choose Roth IRAs over traditional ones. You keep full control over when and how much you withdraw. If you do not need the money, you do not have to touch it.

The only exception is if you inherit a Roth IRA from someone else. Inherited Roth IRAs follow different rules depending on who you are and when the original owner died.

Key Takeaways

  • Roth IRA owners never face required minimum distributions during their lifetime, regardless of age or account balance.
  • You can withdraw contributions (the money you put in) anytime without penalty, but earnings follow different rules based on your age and how long you have held the account.
  • If you inherit a Roth IRA, you must take distributions according to federal rules that depend on your relationship to the original owner and the year they died.
  • Leaving money in a Roth IRA to grow tax-free is a valid strategy if you do not need the funds in retirement.

What Happens to Your Roth IRA After You Die

When you pass away, your Roth IRA goes to whoever you named as a beneficiary. That person must then take distributions from the account, but the rules depend on who they are and when you died.

If your beneficiary is your spouse, they have the most flexibility. A spouse can treat the Roth IRA as their own, roll it into their own Roth IRA, or keep it as an inherited account. If they treat it as their own, they also face no required distributions during their lifetime.

Non-spouse beneficiaries (adult children, other relatives, or friends) must empty the account within a set timeframe. The timeframe changed in 2023 under the SECURE 2.0 Act. Most non-spouse beneficiaries now have 10 years to withdraw all the money, though the exact rules depend on when the original owner died and whether the beneficiary is considered an "may be able to access designated beneficiary" (such as a minor child or a person with a disability).

The Difference Between Contributions and Earnings

Inside your Roth IRA, there are two types of money: contributions (what you deposited) and earnings (the growth and investment gains). You can withdraw your contributions anytime without penalty or taxes, even before age 59½. You do not need a reason, and there is no paperwork required beyond what your IRA provider asks for.

Earnings are different. If you withdraw earnings before age 59½, you owe income tax on them plus a 10% penalty, unless you meet a narrow exception (such as a first-time home purchase up to $10,000 lifetime, or a may have access to disability). The account must also have been open for at least five tax years for any withdrawal of earnings to be tax-free.

Because you can access contributions penalty-free, many people use Roth IRAs as a flexible savings tool in addition to a retirement account. Just keep track of how much you contributed versus how much is earnings, because your IRA provider may not do this automatically.

Why the RMD Rules Exist for Traditional IRAs

Traditional IRAs are subject to required minimum distributions starting at age 73 because the government wants to collect taxes on the money eventually. Contributions to traditional IRAs are often tax-deductible when you make them, so the IRS requires you to start withdrawing and paying taxes at a certain age.

Roth IRAs work the opposite way. You contribute after-tax money (no deduction), and withdrawals are tax-free. Because the government already got its tax revenue when you earned the money, there is no reason to force you to withdraw. This is why Roth IRAs have no RMD for the original owner.

Planning Around Roth IRA Withdrawals

Because you control when you withdraw from a Roth IRA, you can use it strategically in retirement. Some people withdraw only what they need each year and let the rest grow. Others withdraw more in years when their income is low, or less in years when they have other income.

If you have both a traditional IRA and a Roth IRA, remember that RMDs from the traditional IRA can push you into a higher tax bracket or affect other benefits like Medicare premiums or Social Security taxation. Roth withdrawals do not count toward RMD calculations and do not affect your tax bracket the same way, so they can be a useful tool for managing your overall tax picture.

Some people also use Roth IRAs to leave money to heirs. Because the account grows tax-free and beneficiaries can withdraw earnings tax-free (after the five-year rule), a Roth IRA can be a tax-efficient way to pass wealth to the next generation, even though they will have to empty it within 10 years.

Frequently Asked Questions

Can I leave my Roth IRA to my heirs without them having to withdraw it?

No. Non-spouse beneficiaries must withdraw all the money within 10 years of your death. A spouse can treat the account as their own and avoid withdrawals during their lifetime, but other heirs cannot. The 10-year window is a hard deadline set by federal law.

What if I need money from my Roth IRA before age 59½?

You can withdraw contributions anytime without penalty or taxes. Earnings are subject to income tax and a 10% penalty unless you meet a narrow exception. The account must be at least five tax years old for any earnings withdrawal to be tax-free, even if you meet an exception.

Do Roth IRA conversions have RMD rules?

No. If you convert money from a traditional IRA to a Roth IRA, the converted Roth IRA follows the same rules as any other Roth IRA — no RMD during your lifetime. However, the traditional IRA you converted from still has RMD rules if you have other traditional IRAs.

What happens if I do not withdraw from my inherited Roth IRA by the deadline?

You owe a 25% penalty on the amount you should have withdrawn but did not. The penalty drops to 10% if you correct the shortfall within two years. This is a significant penalty, so tracking the 10-year deadline is important.