Convert Traditional to Roth while having inherited traditional IRA
Plan on converting all or a portion of my traditional IRA to a Roth by year end and want to double check the steps.
I am 59 and have multiple IRA’s – Traditional, SEP, Roth and 2 inherited Traditional.
The Inherited accounts were inherited in 2015 upon the death of a non-spouse.
Have already received 2021 rmd’ s from the 2 inherited traditional IRA’s.
Ok to convert my traditional to Roth or are there additional steps that I am missing?
Thank you
Permalink Submitted by Alan - IRA critic on Tue, 2021-11-30 20:07
You can convert as much of your owned traditional and SEP IRAs as you wish to pay taxes on. The inherited IRAs cannot be converted, but the RMDs will add to your taxable income, as will the conversions of owned IRA balances. Otherwise, the inherited IRAs do not affect your conversion process or the timing of the conversion.