IRA Beneficiary
35. Benefits
Now, what about the Roth IRA?
First, unlike a traditional IRA that requires you to start taking your money out at age 70 1/2, with a Roth IRA there are NO required minimum distributions during your lifetime.
Also, unlike a traditional IRA, you can continue to make contributions to a Roth IRA after you have reached age 70 1/2.
Next, as a general rule, after five years or age 59 1/2, whichever is later, all distributions to you and your beneficiaries will be income tax-free. So your money doesn't grow tax-deferred - it grows tax-FREE!
And finally, you can stretch out a Roth IRA just like a regular IRA. After you die, distributions will be paid over the actual life expectancy of your beneficiary. Your spouse can even do a rollover and name a new beneficiary.