Why Roth IRA Inherited by Non-Spouse Must Follow Rules

Episode 55 of Roth IRA with Fexingo tackles the often-confusing rules for non-spouse beneficiaries inheriting a Roth IRA. Lucas and Luna walk through the key regulation: the 10-year distribution rule under the SECURE Act, which took full effect in 2025. They explain why leaving a Roth IRA to a child or sibling is not a simple tax-free handoff, and what happens if beneficiaries miss the annual RMDs or fail to empty the account by year 10. Using a concrete example of a $200,000 inherited Roth IRA, they show how taxes compound if the beneficiary is in a high-earning career. They also contrast the old 'stretch IRA' strategy with today's rules, and touch on why naming a trust as beneficiary adds complexity. Specific, actionable advice for listeners who want to update their own beneficiary forms before year-end. #RothIRA #InheritedIRA #SECUREAct #BeneficiaryRules #NonSpouseBeneficiary #10YearRule #RMDs #StretchIRA #EstatePlanning #TaxFreeGrowth #RetirementPlanning #BeneficiaryForm #TrustAsBeneficiary #RequiredMinimumDistributions #IRAInheritance #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo