Roth IRA New Owner Reporting Obligation

Submitted by Gary Vyneman on Mon, 2015-03-02 21:22

Is there a reporting obligation for a surviving wife when she becomes the new owner (ie, 100% beneficiary) of a deceased husband’s converted Roth?

Thanks in advance!

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Permalink Submitted by Alan - IRA critic on Mon, 2015-03-02 21:44

She should have it re titled as an owned Roth IRA and name her own beneficiaries. If she takes distributions, as long as she has evidence (Form 5498 or deceased’s account statement from 2009 or earlier) of the Roth being over 5 years old, all distributions are tax free as the Roth is fully qualified. She does not have to report on an 8606, just on line 15a of Form 1040. If less than 5 year old, distributions before reaching the 5 years must go on the 8606 and it will take some work to determine what regular and conversion basis the Roth has.