Reply To: SECURE ACT, stretch IRA and grandchildren

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#5044
Alan S.
Participant

The exception for minors is limited to the child of the participant, so no exceptions for grandchildren. If you left a Roth to a grandchild, the 10 year rule would kick in immediately, so there are no annual RMDs and no taxes, and the grandchild would do best to hold the inherited Roth and not distribute it until the end of the 10 year period. Being a tax free Roth, the parents would not have to deal with kiddie taxes like they would if a minor grandchild inherited a traditional IRA.