A Roth IRA is an individual retirement account (IRA) that is funded with money on which income taxes have been paid—but distributions may be taken without paying income tax (tax free) if certain conditions are met—for example if you are at least 59 ½ years old when you begin taking distributions and have had a Roth IRA account for at least five years.

There are no required minimum distributions (RMDs) in the original Roth IRA account owner’s lifetime. And the original Roth IRA account owner can provide their heirs with years of tax-free income (distributions) by properly designating a beneficiary or using the proper trust (a conduit trust) that takes out the required minimum distributions each year.

Because of the complexity, pitfalls, and laws that are constantly evolving, a Roth IRA account owner who wants to leave this asset to heirs should consult with a legal or financial professional who is familiar with the rules.

In Idaho, as in all states, a Roth IRA is a retirement savings account that allows for tax-free distributions under certain conditions, such as the account holder being at least 59 ½ years old and having held the account for a minimum of five years. Roth IRAs are unique in that they do not require minimum distributions during the lifetime of the original account owner, which can be advantageous for estate planning. Account owners can name beneficiaries directly or use a conduit trust to manage distributions after their death, ensuring that heirs can benefit from tax-free income. However, the rules governing Roth IRAs and estate planning are complex and subject to change. Therefore, it is advisable for Roth IRA owners in Idaho who wish to pass on their accounts to heirs to seek guidance from an attorney or financial advisor who is well-versed in the current regulations and tax laws to ensure that their estate planning goals are met effectively and in compliance with the law.