Inherited IRA- Rollover IRA to ROTH
I opened an inherited IRA for a client who at the time was under 59 1/2 years when he received IRA from deceased wife.
He is now 60 years old and I want to do the following if it is possible:
Transfer the Inherited IRA to his own IRA and then begin to convert some of the assets into his ROTH IRA which has been open for over 7 years.
Is that allowed?
Permalink Submitted by Alan - IRA critic on Mon, 2024-08-12 15:23
Yes, he should elect to be treated as the owner, and then as much can be converted as he is willing to pay taxes on. Since his Roth IRA is qualified (5 years and 59.5), the entire balance including the planned conversion can be withdrawn anytime without penalty or taxes.