Roth IRAs do not require you to take money out during your lifetime

A Roth IRA has no required minimum distributions (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 withdrawing money at age 73 (as of 2023), whether you need it or not. With a Roth IRA, you can leave the money untouched for as long as you live.

This rule applies only to the account holder — the person whose name is on the Roth IRA. If you inherit a Roth IRA from someone else, different rules apply to you as the beneficiary.

The no-RMD rule makes Roth IRAs useful for people who do not need the money right away, want to let investments grow longer, or plan to pass the account to heirs. You withdraw only when you choose to, and you pay no tax on the earnings when you do (as long as the account has been open at least five years and you are at least 59½).

Key Takeaways

  • You are never required to withdraw money from your own Roth IRA during your lifetime, no matter how old you are.
  • Beneficiaries who inherit a Roth IRA must take distributions, but the rules depend on when the original owner died and your relationship to them.
  • If you have both a Roth IRA and a traditional IRA, the RMD rules apply only to the traditional IRA, not the Roth.
  • Roth IRA contributions (the money you put in) can be withdrawn at any time without penalty, even before age 59½.

What happens to a Roth IRA after the owner dies

When a Roth IRA owner dies, the beneficiary must take distributions from the account. The exact timeline and amount depend on who the beneficiary is and when the owner died.

If the owner died in 2023 or later, most beneficiaries must empty the account within 10 years. This is called the 10-year rule. You do not have to take money out every year during those 10 years — you can wait until year 10 and withdraw everything at once — but the account must be empty by the end of year 10. Surviving spouses have the option to treat the Roth IRA as their own instead, which means they would not be required to take distributions.

If the owner died before 2023, different rules may apply depending on the beneficiary's relationship to the owner. A surviving spouse could roll the account into their own Roth IRA. Adult children and other non-spouse beneficiaries had to take distributions over their own life expectancy, which usually meant smaller annual withdrawals spread over many years. These older rules no longer apply to deaths after 2022, but if you inherited before 2023, you may still be following the old timeline.

How Roth and traditional IRA RMD rules differ

The difference between Roth and traditional IRA RMD rules is stark. A traditional IRA requires you to start taking distributions at age 73, calculated based on your age and life expectancy. You must take at least a minimum amount each year, or you face a penalty of 25 percent of the amount you should have withdrawn (reduced to 10 percent if you correct the mistake within two years). A Roth IRA has no such requirement while you are alive.

If you own both types of accounts, the RMD rules apply only to the traditional IRA. Your Roth IRA sits untouched. However, if you have multiple traditional IRAs, you calculate the RMD for all of them combined and can withdraw the total from any one account — you do not have to withdraw from each one separately.

This difference matters most for people who do not need the money. With a traditional IRA, you are forced to withdraw and pay income tax on those withdrawals, which can push you into a higher tax bracket or affect other benefits. With a Roth IRA, you control the timing entirely.

Withdrawing Roth IRA contributions before retirement

Even though you are not required to take distributions from a Roth IRA, you are allowed to withdraw your contributions (the money you deposited) at any time without penalty or tax. This is different from traditional IRAs, where any withdrawal before age 59½ usually triggers a 10 percent penalty plus income tax.

The key word is contributions. If you contributed $5,000 per year for five years, you can withdraw up to $25,000 at any age without penalty. The earnings on that money — the investment gains — are a different story. Withdrawing earnings before age 59½ usually means a 10 percent penalty and income tax, unless you meet a narrow exception like disability or a first-time home purchase (up to $10,000 lifetime).

Knowing the difference between contributions and earnings matters when you need money early. Many people use this feature as an emergency fund, since they can access their contributions without consequence. Your Roth IRA custodian (the bank or brokerage holding the account) can tell you how much of your balance is contributions versus earnings.

Converting a traditional IRA to a Roth and RMD timing

If you convert money from a traditional IRA to a Roth IRA, the conversion itself does not trigger an RMD. However, you must take your required minimum distribution from the traditional IRA first in the year you convert. You cannot use the conversion as a way to avoid the RMD.

For example, if you are age 75 and required to take a $10,000 RMD from your traditional IRA, you must withdraw that $10,000 first. After you have satisfied the RMD, you can convert additional money from the traditional IRA to the Roth if you wish. The converted amount will be taxable in the year of conversion, but once it is in the Roth, it follows Roth rules — no future RMD for you as the owner.

This strategy is sometimes used by people who want to move money into a Roth but are subject to RMD rules. It requires careful timing and coordination with your tax situation, so many people work with a tax professional or financial advisor when planning a conversion.

State tax treatment of Roth IRAs

Most states do not tax Roth IRA distributions, but a few do. The federal government does not tax Roth withdrawals (assuming you meet the five-year rule and age 59½), but state income tax is separate. If you live in a state with income tax, check your state's rules about Roth IRAs before assuming your withdrawals are tax-free.

States that currently do not tax retirement income — including Florida, Texas, Tennessee, and Wyoming — will not tax your Roth withdrawals. States with income tax usually exempt Roth distributions as well, but the rules can be specific. Some states tax only certain types of retirement income, or have different rules for residents versus non-residents. Your Roth IRA custodian or a tax professional can clarify your state's treatment.

Frequently Asked Questions

Can I withdraw money from my Roth IRA without penalty before age 59½?

You can withdraw your contributions at any age without penalty. Withdrawing earnings before 59½ usually triggers a 10 percent penalty and income tax, unless you meet an exception like disability, a first-time home purchase (up to $10,000), or a may have access to education expense. Your custodian can tell you how much of your balance is contributions versus earnings.

What if I forgot to take an RMD from my traditional IRA?

The penalty is 25 percent of the amount you should have withdrawn (reduced to 10 percent if you correct it within two years). You can request a waiver from the IRS if you have a reasonable cause, such as poor health or reliance on bad advice. File Form 5329 with your tax return and include a written explanation. Contact the IRS or a tax professional for help with the waiver request.

Do I have to take distributions from a Roth IRA if I inherit one?

Yes, beneficiaries must take distributions from an inherited Roth IRA. If the owner died in 2023 or later, you generally have 10 years to empty the account. If the owner died before 2023, you may be following older rules that require annual distributions. A surviving spouse can treat the Roth as their own and avoid distributions.

Can I convert my traditional IRA to a Roth if I am subject to RMD?

Yes, but you must take your required minimum distribution from the traditional IRA first in that calendar year. After satisfying the RMD, you can convert additional money to the Roth. The converted amount is taxable, but once in the Roth, it has no RMD requirement for you as the owner.