Roth IRAs and Required Minimum Distributions: What You Need to Know

Roth IRAs do not require you to take distributions during your lifetime

A Roth IRA has no required minimum distributions (RMDs) while you are alive. This is one of the most valuable features of a Roth account compared to a traditional IRA or 401(k). You can leave the money in the account to grow tax-free for as long as you want, and the IRS will not force you to withdraw anything at any age.

This flexibility means you can work longer, delay retirement, or simply let compound growth do its work without the pressure of mandatory withdrawals. If you do not need the money, you do not have to touch it. The account continues to grow tax-free whether you withdraw or not.

Key Takeaways

• Roth IRAs have no required minimum distributions during the account owner's lifetime, unlike traditional IRAs and 401(k)s.
• After you die, your beneficiaries must follow distribution rules that depend on their relationship to you and when you opened the account.
• The SECURE Act changed how beneficiaries inherit Roth IRAs, requiring most non-spouse beneficiaries to empty the account within ten years.
• You can withdraw your contributions (not earnings) from a Roth IRA at any time without penalty, regardless of your age.
• If you inherit a Roth IRA from someone else, you must take distributions even though the original owner did not have to.

Why Roth IRAs skip the RMD requirement

The IRS treats Roth IRAs differently from traditional retirement accounts because the money going in has already been taxed. With a traditional IRA or 401(k), the government deferred your taxes when you contributed, so it wants those taxes paid eventually through forced withdrawals. A Roth IRA received after-tax dollars, so the IRS has already collected its share on the way in.

This tax treatment creates the no-RMD advantage. The government does not need to force you to withdraw to collect taxes on growth. You can let the account sit untouched for decades if you choose, and all the earnings remain tax-free.

What happens to a Roth IRA after you die

The no-RMD rule applies only while you own the account. Once you die, your beneficiaries inherit the Roth IRA and must follow distribution rules. The rules depend on who inherits and when the account was opened.

If your spouse inherits your Roth IRA, they can treat it as their own and continue the no-RMD advantage. They can leave it untouched for their entire lifetime. A spouse also has the option to roll the inherited Roth into their own Roth IRA, which simplifies administration.

Non-spouse beneficiaries—adult children, grandchildren, siblings, or other heirs—face stricter rules. Under the SECURE Act (passed in 2019), most non-spouse beneficiaries must withdraw the entire inherited Roth IRA within ten years of the account owner's death. They do not have to take equal amounts each year, but the account must be empty by the end of year ten. Some exceptions exist for disabled beneficiaries, chronically ill beneficiaries, and beneficiaries who are less than ten years younger than the deceased, but these are narrow.

The difference between inherited Roth IRAs and your own

If you inherit a Roth IRA from someone other than your spouse, you cannot treat it as your own account. You must retitle it as an "inherited Roth IRA" in the name of the deceased. This distinction matters because it triggers the ten-year distribution rule even though the original owner never had to take distributions.

The advantage is that distributions from an inherited Roth IRA are tax-free, just as they would be from the original owner's account. You are not paying income tax on the withdrawal. But you are required to withdraw, whereas the person who funded the account was not.

If you inherit a Roth IRA and need the money, you can withdraw it without penalty at any age. There is no 59½ age requirement for inherited accounts. This makes an inherited Roth a useful source of funds if you retire early or face an unexpected expense.

Roth conversions and RMD rules

If you convert money from a traditional IRA to a Roth IRA, the converted Roth follows the same no-RMD rule as any other Roth. You do not have to withdraw the converted amount or any earnings on it during your lifetime. This is another reason conversions appeal to people who want to minimize forced distributions in retirement.

However, if you still own a traditional IRA alongside your Roth, the traditional IRA is subject to RMDs starting at age 73 (as of 2023, under the SECURE 2.0 Act). The RMD calculation is based on the combined value of all your traditional IRAs, but you can withdraw the RMD from any single traditional IRA. You cannot use a Roth withdrawal to satisfy a traditional IRA RMD.

Withdrawing from your Roth before age 59½

Because Roth IRAs have no RMD, some people assume they also have no withdrawal restrictions. That is partially true. You can withdraw your contributions (the money you put in) at any time, at any age, with no penalty and no tax. The IRS considers contributions your own money since you already paid tax on it.

Earnings (the growth on your contributions) are different. If you withdraw earnings before age 59½ and before the account has been open for five years, you owe income tax on the earnings plus a 10% penalty. The five-year rule resets if you convert a traditional IRA to a Roth; the conversion starts its own five-year clock. This is one reason to plan conversions carefully if you think you might need the money soon.

Planning around RMDs with a Roth

The no-RMD feature makes Roth IRAs useful for people who want to control their retirement income. If you have a large traditional IRA and face large RMDs that push you into a higher tax bracket, converting some of that traditional IRA to a Roth can reduce future RMDs. You pay tax on the conversion upfront, but you shrink the traditional IRA balance that triggers RMDs later.

This strategy works best if you have several years before RMDs begin and if you can pay the conversion tax from outside the IRA. If you use IRA money to pay the conversion tax, you reduce the benefit. A financial professional who understands your full tax picture can help you decide whether a conversion makes sense for your situation.

Frequently Asked Questions

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

No. Your children must withdraw the entire inherited Roth IRA within ten years under the SECURE Act, though they do not have to take equal amounts each year. If your spouse inherits it, they can leave it untouched for their lifetime by treating it as their own Roth IRA.

Do I have to take money out of my Roth IRA at age 73?

No. Roth IRAs have no required minimum distributions at any age while you own the account. If you also own a traditional IRA, that traditional IRA is subject to RMDs at age 73, but your Roth is not.

What if I need money from my Roth before I turn 59½?

You can withdraw your contributions at any time without penalty or tax. If you withdraw earnings before age 59½ and before the account has been open five years, you owe income tax on the earnings plus a 10% penalty. Contributions and earnings are tracked separately on your tax return.

Does converting a traditional IRA to a Roth create an RMD?

No. Once money is in a Roth IRA—whether from original contributions or a conversion—it has no RMD requirement during your lifetime. The converted Roth follows the same rules as any other Roth account.

What happens if I inherit a Roth IRA and do not withdraw by the ten-year deadline?

Any remaining balance in the inherited Roth IRA after ten years is subject to income tax and penalties. The IRS treats it as a missed distribution. You should work with the account custodian to ensure the account is fully distributed by the end of year ten.