He Inherited $250,000 in His Wife’s Roth, and Then Taxes Wiped Out Part of It.
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The post He Inherited $250,000 in His Wife’s Roth, and Then Taxes Wiped Out Part of It. appeared first on 24/7 Wall St..
A Roth IRA is supposed to be the cleanest asset a spouse can inherit. Contributions were already taxed. Qualified withdrawals come out tax-free. Yet a $250,000 Roth balance can still shrink after a spouse dies, and the culprit is usually what the surviving spouse does with it in the first year, combined with a few federal tax rules that punish the wrong choice.
The scena
A Roth IRA is supposed to be the cleanest asset a spouse can inherit. Contributions were already taxed. Qualified withdrawals come out tax-free. Yet a $250,000 Roth balance can still shrink after a spouse dies, and the culprit is usually what the surviving spouse does with it in the first year, combined with a few federal tax rules that punish the wrong choice.
The scena
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