One of the biggest advantages of a Roth IRA is freedom from required minimum distributions. Here is exactly how that exemption works and where it ends.
Roth IRAs have no lifetime RMDs
Unlike traditional IRAs and 401(k)s, a Roth IRA never requires you to take distributions during your lifetime. You contributed with after-tax dollars, so the IRS does not force withdrawals to collect deferred tax. This lets your Roth balance keep growing tax-free for as long as you live, and you can pass it to heirs. The exemption is a key reason some retirees convert traditional savings to a Roth before reaching RMD age, reducing the future taxable distributions that would otherwise raise their Medicare premiums.
When Roth distributions are required
There is one major exception: inherited Roth IRAs. When a beneficiary inherits a Roth IRA, distributions are required, and most non-spouse beneficiaries must empty the account within 10 years of the owner's death. The distributions are generally tax-free, but the account cannot be held indefinitely. Separately, while Roth 401(k) accounts dropped the lifetime RMD requirement on January 1, 2024, any RMDs that should have been taken in prior years still applied. Confirm your specific situation if you hold a Roth inside an employer plan.
How Roth strategy supports your Medicare costs
Because Roth withdrawals are tax-free and excluded from RMDs, they do not inflate the income that drives Medicare IRMAA surcharges. That makes Roth accounts a powerful tool for managing healthcare costs in retirement. Call 1-800-MEDIGAP (dial 1-800-633-4427) to learn how balancing Roth and traditional withdrawals can help keep your Medicare premiums in check.