Inherited IRA & basis ratio for Roth Conversion
Taxpayer has two traditional IRA’s -1) contributory IRA with FMV of $18k and after tax basis of $18k. 2) Has inherited IRA received from deceased parent. When determining all IRAs for the basis ratio, do you take into account the inherited IRA or is there an exception to exclude this from All IRA’s.
Permalink Submitted by Alan Spross on Sat, 2010-01-23 19:57
Any basis or account value in an inherited IRA is NOT combined with any basis or value in owned IRAs. They always remain separate. And this also makes sense because you cannot convert the inherited IRA anyway.