Non EDB of an IRA Roth Conversion Rules
I am a Non EDB of a traditional IRA who needs to take RMDs for 10 years on this account I inherited in 2024.
I understand that you cannot do roth conversions before you take your RMD out of your OWN IRA, but is it true that I can do a roth conversion BEFORE I take my RMD out of this INHERITED IRA.
If I am correct, is there an IRS publication that states this?
Thank you!
Permalink Submitted by Alan - IRA critic on Mon, 2025-04-07 11:41
Yes, you can convert from your own IRA before you take an inherited IRA distribution, although I have never seen this simply stated in an IRS publication.
This conclusion is based on the following:
The first distributions taken from an IRA are automatically treated as RMDs and an RMD is never eligible for rollover. A conversion is a rollover, therefore you must complete your own IRA RMD (for all owned IRAs) before you can convert from any of them.
Conversely, a non spouse inherited IRA distribution (RMD) is never eligible for rollover, nor can an inherited IRA be converted because a conversion is a rollover.
Inherited IRA RMDs and timing are not affected by owned IRA RMDs or timing.
Permalink Submitted by Beth Alwin on Tue, 2025-04-08 13:33
Thank you!