Beneficiary Traditional IRA to Roth Conversion?
Can I do this?
IE: Mother’s Traditional IRA, divided in death into 2 equal portions for benefit of my brother and myself.
Can I convert MY portion of my new IRA to a Roth?
If so, how much time do I have to retitle it?
Thanks.
Permalink Submitted by Alan Spross on Wed, 2009-10-07 22:18
A non spouse inherited IRA cannot be converted to an inherited Roth IRA OR an owned Roth IRA. However, since a non spouse inherited qualified retirement plan CAN be converted, we have a very inconsistent treatment. Accordingly, it is possible that you may be able to convert it sometime in the future if the law changes, but you cannot at this time. You need to take your RMDs in the meantime. I assume you have properly re titled the inherited traditional IRA since it has been divided.
Permalink Submitted by Janine Janine on Fri, 2009-10-09 00:05
However, I believe that he/she does not have to take a RMD for 2009. Correct?
Permalink Submitted by Alan Spross on Fri, 2009-10-09 03:03
Correct. The only RMD that would have to be taken in 2009 would be prior year RMDs that Mother had failed to distribute for 2008 or earlier years, if any.