Inherited IRAs for ROTH Conversion in 2010
I have contributed to a non-deductible IRA in 06, 07 and 08 and my goal is convert these IRAs in 2010. I do not have any other IRAs with the exception of a $30,000 Inherited IRA.
Does the law require that I include the value of an Inherited IRA in the calculation of the pre-tax conversion to the ROTH IRA in 2010?
Permalink Submitted by Alan Spross on Mon, 2008-04-14 21:27
No, you cannot include the inherited IRA unless it was inherited from a spouse and you will have assumed ownership of it or defaulted into ownership by not taking RMDs required as a beneficiary.
If it was inherited from a non spouse, it cannot be converted nor can it be included in your calculations for the taxable amount of your conversion. That will help your conversion retain a higher percentage of basis. Be sure your 8606 forms have been filed for all these non deductible contributions.