What is the best thing to do with an inherited Roth IRA?

Assuming you don't need the money right away, the best thing to do with an inherited IRA is often to allow the money to grow tax-free for as long as possible. If you inherited a Roth IRA from someone other than your spouse, you typically have 10 years following the original owner's death to deplete the account.

Do beneficiaries pay taxes on a Roth IRA inheritance?

Usually, no. Withdrawals of both contributions and earnings from an inherited Roth IRA are generally tax-free as long as the account is at least five years old.

Does the 10-year rule apply to inherited IRAs?

Yes, the 10-year rule applies to most inherited IRAs if they're inherited from a non-spouse and the original owner died after 2019. (Exceptions apply if you're an eligible designated beneficiary.) If the 10-year rule applies, you'll need to withdraw all account funds within 10 years of the original owner's death.

Is it better to inherit a Roth IRA or a traditional IRA?

It's generally better to inherit a Roth IRA instead of a traditional IRA because a Roth IRA offers tax-free withdrawals if the account is at least five years old.

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Inherited a Roth IRA? Here's What to Do Now

The rules for taxes and beneficiaries you need to know.

By Robin Hartill, CFP – Updated Mar 4, 2026 at 11:49 AM EST | Fact-checked by Margo Winton Parodi

Key Points

Inherited Roth IRAs bypass probate and go directly to the person listed as the beneficiary.
Roth IRA distribution rules differ for spouses vs. non-spouses.
Most non-spouse beneficiaries need to withdraw all Roth IRA assets within 10 years of the original owner's death.

You can inherit a Roth individual retirement account (IRA) and avoid a lengthy court process known as probate as long as the person who died listed you as a beneficiary. The distribution rules for beneficiaries can get complicated and depend on two key factors:

Your relationship to the original account owner: The IRS lets you treat a Roth IRA from a spouse as if the funds were always yours. For non-spouses, different rules apply.
When the original account owner died: The SECURE Act, which went into effect in 2020, changed the inherited IRA rules. If your loved one died before Dec. 31, 2019, then the old rules apply.

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Probate

Probate is a court-supervised process of administering a deceased person's estate. Learn about how probate works and how to avoid it.

An infographic outlining the four criteria to qualify as an eligible designated beneficiary for an inherited Roth IRA. — Image source: The Motley Fool

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Inherited Roth IRA FAQ

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About the Author

Robin Hartill, CFP, is a contributing writer at The Motley Fool. Robin’s work has also been published by Yahoo Finance, USA Today, and Penny Hoarder. She is a graduate of the University of Florida.

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