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 Mississippi, as in all states, Roth IRAs are governed by federal law, not state law. Roth IRAs offer tax-free growth and tax-free withdrawals in retirement if certain conditions are met, such as the account holder being at least 59 1/2 years old and having held the account for at least five years. Unlike traditional IRAs, Roth IRAs do not require minimum distributions during the lifetime of the original owner, allowing the potential for the assets to grow tax-free for a longer period. Upon the owner's death, beneficiaries can inherit the Roth IRA and may be able to take distributions tax-free. However, the rules for inheritance and distributions to beneficiaries can be complex, especially when trusts are involved. It is advisable for Roth IRA owners in Mississippi to consult with an attorney or financial advisor who is knowledgeable about the latest federal tax laws and estate planning strategies to ensure that their Roth IRA is passed on to their heirs in the most tax-efficient manner possible.