11 Mistakes to Avoid with Your Roth IRA

4. Withdrawing an Inherited IRA after the deadline

A Roth IRA don’t have required minimum distributions as long as the owner of the Roth IRA is alive. Owners need not withdraw money during their lifetime, allowing their investment to continue to grow tax-free. However, these rules change in the case of an inherited Roth IRA. This is because inherited Roth IRAs carry required minimum distributions and an owner must withdraw money within a specified time. The general rule is that owners of an inherited IRA must empty the account within 10 years of the death of the original owner. This rule applies to Roth IRAs inherited in the year 2020 or later.