inherited IRAs and the pro rata rule
Hello Alan et al,
I’m just writing to confirm that inherited IRAs are not considered in the pro rata formula for determining whether a backdoor Roth IRA conversion is a taxable event. I understand that SEPs and Simples are included in the pro rata formula but non-spousal inherited IRAs are not included.
Thanks,
Chris
Permalink Submitted by David Mertz on Thu, 2023-12-07 21:20
Correct. Inherited IRAs are independent of the individual’s own IRAs.