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 West Virginia, as in all states, a Roth IRA is governed by federal tax laws. Contributions to a Roth IRA are made with after-tax dollars, meaning the money has already been subject to income tax. Qualified distributions from a Roth IRA, including earnings, are tax-free provided certain conditions are met, such as the account being at least five years old and the account owner being 59 1/2 years of age or older. Unlike traditional IRAs, there are no required minimum distributions for the original owner of a Roth IRA during their lifetime, allowing the potential for the funds to grow tax-free indefinitely. Beneficiaries of Roth IRAs can also benefit from tax-free distributions, but it is crucial to designate a beneficiary or establish a trust, such as a conduit trust, to manage the distributions properly after the account owner's death. Due to the intricacies of estate planning and the evolving nature of tax laws, it is advisable for Roth IRA owners in West Virginia to consult with an attorney or financial advisor who is knowledgeable about the current regulations to ensure their intentions for their heirs are met and to maximize the tax benefits of their retirement assets.