Roth IRA - It appears that I have the option of a full distribution of my 50% of his Roth IRA or I can roll my share into an Inherited Roth IRA. I would like to maintain the tax-free growth of this account as much as possible, but I have a few questions:
- Any penalties or taxes at all to taking a full disbursement since it is a Roth?
- If I converted my share into an Inherited Roth IRA, it is my understanding that I must take it all out within 10 years. Would there be any issue with taking it out in 10 equal yearly distributions, and then maxing out my own Roth IRA contribution with this money? (I have not been currently contributing to a Roth, and I do have an earned income that would allow Roth contributions.)
- The Roth IRA is currently with Victory Funds. If I wanted to end up with an Inherited Roth IRA at Vanguard where my other accounts are, how would that work? Do I need to create an Inherited Roth IRA at Victory Funds to roll my share of his Roth into, and then transfer the Inherited Roth from Victory to Vanguard?
- Immediate Lump Sum Payment - I like the idea of this, I could just invest it all in my taxable account at Vanguard, but I don't want to pay taxes on 44K of inheritance additional to my normal taxes this year.
- 5 Year Deferral of Immediate Lump Sum Payment - Does this lock everything up for 5 years? Could I make withdrawals of any amount at any time within the 5 years? What are the tax ramifications of this?
- Annuitization - not sure what this option means or what the ramifications are.
- Life Expectancy Payments - not sure what this option means or what the ramifications are.
- Proceeds to Guardian Asset Account (GAA) - not sure what this option means or what the ramifications are.
Thank you for any help offered here. I have enjoyed reading this site and have learned a lot. Hoping someone can clarify my options with these accounts and help suggest the best avenue for these accounts.