Inherited IRA to roth
Please clarify my thinking.
Is it true that a non-spouse (daughter) cannot convert a properly titled inherited IRA to a Roth IRA.
Thank you
Please clarify my thinking.
Is it true that a non-spouse (daughter) cannot convert a properly titled inherited IRA to a Roth IRA.
Thank you
Permalink Submitted by Alan Spross on Mon, 2008-01-14 19:05
Yes, that is correct. For a non spouse beneficiary to inherit a Roth, the owner must convert prior to death and incur taxes on the conversion.
However, if the non spouse beneficiary inherits a TIRA, providing that they have earned income, they could help fund regular Roth contributions using the RMDs or additional distributions from the inherited TIRA. The earned income would essentially fund the Roth contribution and the TIRA RMDs would be used for other expenses.