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  With respect to a Roth IRA, distributions/withdrawn funds are first deemed to be paid out of contributions, which are nondeductible (or already taxed if prior rollover).  Accordingly, substantial withdrawals can be made from Roth IRAs without tax or penalty.Thus, if all of the deceased owner's other assets combined with the value of the IRA or 401(k) exceed the current federal or state estate tax exemption, then the deceased owner's estate will owe estate taxes.If the deceased owner's estate is taxable, but there aren't enough assets outside of the IRA or 401(k) to pay the estate tax bill, then this will pose a serious problem for the beneficiary of the IRA or 401(k). Because each withdrawal from an IRA or 401(k) will result in the amount withdrawn being included in the beneficiary's taxable income.

Distribution was made to a beneficiary or estate on account of the IRA owner's death2. Distribution was part of a series of substantially equal periodic payments for your life or life expectancy or the joint lives of you and your designated beneficiary4. Distributions are not in excess of qualified higher education costs6.

If you withdraw less than the RMD amount, you may owe a 50% penalty tax on the difference.

Roth IRAs have no RMDs during the owner's lifetime.

You may be able to deduct some or all of your traditional IRA contributions.

The deductible amount could be reduced or eliminated if you or your spouse is already covered by a retirement plan at work.

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