Inherited IRA – Aggregation Rules
My 28 year old client inherited IRA . She is considering converting some IRA funds to a ROTH.
Is her inherited IRA included in the aggregation rules? Is the inherited IRA part of her IRAs in this calculation?
My 28 year old client inherited IRA . She is considering converting some IRA funds to a ROTH.
Is her inherited IRA included in the aggregation rules? Is the inherited IRA part of her IRAs in this calculation?
Permalink Submitted by Alan - IRA critic on Tue, 2024-08-06 14:02
No, inherited IRAs are not part of the balance used to calculate the taxable amount of a conversion from an owned IRA. Therefore the value of inherited IRAs is not to be included on line 6 of Form 8606 unless a distribution is being taken from the inherited IRA. The inherited IRA also cannot be converted by a non spouse beneficiary.