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 Washington state, as in the rest of the United States, a Roth IRA is a retirement savings account that allows for tax-free distributions under certain conditions. Contributions to a Roth IRA are made with after-tax dollars, meaning the money has already been subject to income tax. To withdraw earnings tax-free, the account holder must be at least 59 ½ years old and have held the account for a minimum of five years. Unlike traditional IRAs, Roth IRAs do not require minimum distributions during the lifetime of the original account owner, allowing the funds to potentially grow tax-free for a longer period. Additionally, account owners can pass on their Roth IRA to heirs with the potential for continued tax-free distributions. However, to ensure that the Roth IRA is passed on correctly and to navigate the complexities of estate planning, it is advisable for account owners to consult with an attorney who is knowledgeable about the latest regulations and estate planning strategies, including the use of trusts to manage distributions for beneficiaries.