Q.What tax will my heirs owe on an inherited Roth IRA?
A.No income tax will be owed, so long as the funds have been in the Roth IRA for at least 5 years. Moreover, your heirs will be allowed to take minimum withdrawals throughout the lives (based on the value of the Roth and the life expectancy of your heirs). This enables the assets in the Roth IRA to continue to grow tax free.
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