Craig Wear, CFP® explains how Roth IRA inheritances under the SECURE Act require non-spouse beneficiaries to withdraw the account within 10 years, but because Roth distributions are tax-free, heirs gain flexibility to time tax-free withdrawals to suit their financial needs. The speaker recommends recognizing that heirs can optimize distributions to align with their own tax and life circumstances.
All right. Number six, this kind of deals with giving your heirs more flexibility with this 10 year rule. As I've already said, under that Secure act, non spouse beneficiaries have to empty even that roth IRA within 10 years after they inherit it. But because they don't have to pay taxes on those Roth distributions, it's going to give them a lot of flexibility. They can withdraw the entire amount tax free at any point during those 10 years, which allows them to maybe plan withdrawals based on what their financial needs are and other life circumstances and situations that come around. So our strategy here is that really recognize that your heirs can really optimize their distributions from the Roth IRA that align with their own financial and tax circumstance. Okay.
