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Inherited Roth IRA

Inherited IRAs are specifically designed for retirement plan beneficiaries—those who have inherited an IRA or workplace savings plan, such as a 401(k).

Fidelity realizes that inheriting assets may be stressful. We recommend calling a Fidelity Inheritor Services specialist at 800-544-0003 to help guide you through the process, in addition to consulting your attorney or tax advisor.

If you are the spouse of the deceased account holder, you are eligible to move the assets into your own IRA at Fidelity. Call us for more information or learn about your choices when inheriting an IRA.

Account details

Earnings

Any earnings grow federal income tax-deferred or tax-free.

Fidelity minimum
to open

None; transfer any inherited amount.

Minimum required
distributions (MRDs)1

Vary by a number of factors, including your relationship to the deceased.

May be based on your age or the deceased’s age at the time of death. Penalties may occur for missed MRDs. Most are required to begin by December 31 of the year following the date of death.

Any MRDs due for the original owner must be taken by their deadlines to avoid penalties.

Other withdrawals

No tax penalties on withdrawals at any age. Withdrawals may not be rolled back into the inherited account.

Certain decisions must be made within 9 months of the date of death and by December 31 of the year following the date of death.

Account benefits

Unique advantage
for inheritors

Provides the opportunity to continue the tax-advantaged growth of an inherited retirement account.

Investment options

A wide range of mutual funds, stocks, bonds, ETFs, and FDIC-insured CDs

Support and guidance

Inheritor Services specialists to help you through the transfer process

Ongoing, one-on-one guidance—in person, online, or over the phone

Research and tools to help you create a long-term plan and choose investments

Fees

Account opening and annual maintenance fees

None*

*There is no cost to open and no annual fee for Fidelity's Traditional, Roth, SEP, and Rollover IRAs. A $50 account close out fee may apply. Underlying fund expenses, including low balance and short term trading fees still apply. There may also be fees and expenses associated with transacting or holding specific investments.
Trading fees2

$7.95 for online U.S. equity trades

Core position

Uninvested cash

Uninvested cash in your account is held in what is known as a core position. Think of your core position as a place where money is held before you invest it or distribute it from your account. For an Inherited Roth IRA, the core position is the Fidelity Government Money Market Fund (SPAXX).

Focus is on tooltip

core position

where your money is held until you invest it or distribute it from your account; money in your core position is used for buying and selling securities and to process checks, electronic funds transfers (EFTs), cash transactions, wire transfers, deposits, authorized credit card transactions, and Fidelity BillPay®, if available on your account

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information.  Read it carefully.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund.

The tax information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice. Fidelity does not provide tax advice. Always consult with an attorney or tax professional regarding your specific legal or tax situation.
1. After you reach age 70½, the IRS generally requires you to withdraw an MRD annually from your tax-advantaged retirement accounts (excluding Roth IRAs during the lifetime of the original owner). MRDs are generally required for inherited retirement assets and depend on many factors.
2. $7.95 commission applies to online U.S. equity trades in a Fidelity account with a minimum opening balance of $2,500 for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (of between $0.01 to $0.03 per $1000 of principal). Other conditions may apply. See Fidelity.com/commissions for details.
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