Permalink Submitted by Alan Spross on Sat, 2008-03-08 05:16
Yes. The RMDs should be brought up to date including any that were not taken by the husband for both the year of his death and prior, and for the year the inherited IRA is converted to a Roth.
Permalink Submitted by Alan Spross on Sat, 2008-03-08 20:05
Right. The new Roth is not subject to RMDs and is treated in all respects as a conversion contribution to the wife’s Roth. While there are no RMDs, the tax status of any distributions she may take is based on the ordering rules for Roth distributions or if she already has a Roth that is qualified for tax free distributions.
Permalink Submitted by Alan Spross on Sat, 2008-03-08 05:16
Yes. The RMDs should be brought up to date including any that were not taken by the husband for both the year of his death and prior, and for the year the inherited IRA is converted to a Roth.
Permalink Submitted by dan casey on Sat, 2008-03-08 13:21
So then the RMDs are no longer required from the new ROTH?
Permalink Submitted by Alan Spross on Sat, 2008-03-08 20:05
Right. The new Roth is not subject to RMDs and is treated in all respects as a conversion contribution to the wife’s Roth. While there are no RMDs, the tax status of any distributions she may take is based on the ordering rules for Roth distributions or if she already has a Roth that is qualified for tax free distributions.