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 Wisconsin, 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 1/2 years old and having 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. This feature allows the owner to leave the account to heirs with the potential for tax-free growth and distributions. When planning for inheritance, the account owner can designate a beneficiary directly or use a conduit trust to manage distributions. It's important to note that estate planning and retirement account regulations can be complex and subject to change. Therefore, individuals in Wisconsin looking to optimize their Roth IRA for inheritance purposes should seek advice from an attorney who is knowledgeable about current federal laws, state statutes, and tax regulations to ensure compliance and to maximize the benefits for their heirs.