Inherited Roth IRA from my brother - confused about RMD requirements?

Thank you so much for the detailed explanation! So just to make sure I understand correctly - I don't actually need to take any money out each year as long as I empty the account completely by the end of 2033? And these withdrawals should be tax-free because it's a Roth? Also, how do I know if my brother held the account for at least 5 years? He was only 42 when he passed, but I'm not sure how long he had this specific Roth IRA.

You're understanding correctly. With an Inherited Roth IRA under the 10-year rule, you don't need to take annual distributions - you just need to empty the account by December 31, 2033. You can take withdrawals however you want during that period (all at once, spread out, or wait until the final year). For the 5-year rule question, what matters is when your brother first opened ANY Roth IRA, not just this specific account. You can check with the financial institution - they should have records of when he first contributed to a Roth IRA. If it was less than 5 years before he passed, only the earnings portion might be taxable (his contributions would still come out tax-free).

Did they actually give you personalized advice or just general information? I'm dealing with an inherited 401k (not a Roth) and wondering if this would help with my situation too. The IRS publication on this stuff might as well be written in ancient Greek for all I understand.

I'm skeptical about these kinds of services. How do you know they're giving correct information? My accountant charges me $300/hr but at least I know she's licensed and has been doing this for 25 years. Did you verify the information they gave you with a professional?

They provided personalized guidance based on my specific documents and situation. It wasn't just generic information - they looked at when the account was established, account type, my relationship to the deceased, and other factors to determine exactly which rules applied to me. They'd definitely be able to help with an inherited 401k situation. I completely understand being skeptical - I was too! What convinced me was that everything they told me matched what I later confirmed with my CPA, but they explained it in much clearer terms. Their analysis references specific IRS codes and regulations, and they update their information whenever tax laws change. My accountant actually complimented how thorough their documentation was when I shared it with him.

Wait, how does this actually work? I'm trying to understand what they're doing differently than if I just called the IRS myself? It sounds like they're just calling for you, but how does that get around the wait times?

This sounds like BS honestly. If the IRS lines are jammed, how is some third-party service magically getting through? Sounds like they're just taking your money for something you could do yourself if you're patient enough. Has anyone else actually confirmed this works?

They use an automated system that continuously redials and navigates through the IRS phone menu system until it gets into the queue. Once you're in the queue, their system holds your place until an agent is available, then they connect you directly. It's not about "cutting the line" - it's about having technology handle the frustrating part of getting into the queue in the first place. I was skeptical too! I tried calling the IRS myself for three days straight with no luck - either couldn't get through or waited on hold for hours before getting disconnected. With Claimyr, I was connected to an IRS agent within 17 minutes of signing up. For me, the time saved was absolutely worth it. They also record the call reference number so you have proof of the conversation for your records, which came in handy when I had to reference my case later.

Thanks for bringing this up! My brother was actually 4 years older than me (he was 42, I'm 38), so I would be less than 10 years younger. So that would potentially make me an "eligible designated beneficiary"? How would the life expectancy distributions work compared to the 10-year rule? Would that be more advantageous for me? The account was definitely established before 2020, probably around 2017-2018 if I remember correctly.

Since you're less than 10 years younger than your brother and the account was established before 2020, you may indeed qualify as an eligible designated beneficiary. This would allow you to use the "life expectancy method" instead of the 10-year rule. Under the life expectancy method, you would take annual RMDs based on your life expectancy using the IRS Single Life Expectancy Table. You'd look up your life expectancy factor based on your age in the year after your brother's death (so your age in 2024), then divide the account balance by that factor to determine your first RMD. Each subsequent year, you'd reduce the divisor by 1. This approach can be more advantageous because it allows you to stretch distributions over your lifetime, potentially allowing for more tax-free growth within the Roth IRA. Since it's a Roth, your distributions would still be tax-free assuming the 5-year rule is satisfied. I'd strongly recommend confirming this with a tax professional who can review your specific circumstances.

Yes, I went through this with my dad's IRA (although not a Roth). The institution required the account to be titled similarly to what you described, along with submitting his death certificate, my ID, and completing their beneficiary claim form. Each institution seems to have slightly different requirements, but the titling format is pretty standard to make it clear it's an inherited account. I'd also recommend asking about their specific process for handling RMDs from the inherited account, since some places automatically calculate and notify you, while others put the responsibility entirely on you to withdraw the correct amounts on time. With an Inherited Roth IRA, it's especially important to get this right since the rules are a bit different.