Inherited IRA to Roth
What is the best way to move a non-spousal inherited IRA (they are over 50) into a Roth? The death just occurred, and this year’s RMD has been made, but haven’t yet created the inherited IRA for the bene’s. I know they can take a distribution and deposit into a Roth, but are there any backdoor methods to fund more Roth before the 10 years’ runs out?
Permalink Submitted by Lee Applebaum on Mon, 2024-12-09 22:23
If the decedent made the full RMD in the year of death (2024), can the beneficiary (under 59.5) take a distribution at all, or must they wait until year 1 (in this case, 2025) to take a distribution? If they take a distribution in year 0 (2024), is there a 10% penalty?