Really helpful as I just inherited an IRA and did not realize my mom's RMD would cause me to also have a RMD. nb: "Inflation Reduction Act" goes along with the theory on naming laws 🙂
It's not THAT confusing, but the way he explains it? Sheesh. Luckily, I'm grandfathered and don't have to worry about all these new changes. Unless someday the IRS removes the grandfathering from inherited IRAs started before 2020. A nice decision tree flowchart would make this simple to understand for most anyone.
When inheriting a Roth IRA you have to transfer the original Roth IRA funds into a custodian beneficiary Roth IRA account, but its not clear if the beneficiary's account or the original owner's account needs to have existed for 5 years for earnings to be tax free. Does the original owner or the beneficiary need to have held ownership of the Roth IRA funds for over 5 years for the distributed earnings to be tax free?