inherited ira
I have a client who’s parents are now both deceased. The father had an IRA, died, the mother did a spousal rollover [we think but aren’t sure] and now the mother has died. There are two sons that are the beneficiary ages 58 and 56. [1] Can we set up a beneficiary IRA in the son’s name and withdraw MRD’s each year based on the oldest son’s age? This would be an asset transfer from a current mutual fund account. And [2], could the son[s] pay the tax on the entire amount and convert the funds to a Roth?
Permalink Submitted by Jose Morales on Wed, 2013-03-13 16:43
To answer the second question first, no they cannot convert the inherited funds to a Roth in their own name.There is more information that would be needed to properly assist with the first question. First, you need to determine whether the mother did in fact complete a spousal rollover or take the funds into her own name, rather than set up an inherited IRA with her remaining the beneficiary of the deceased husband’s IRA.