Converting a spouse Beneficiary IRA

Submitted by Gail Schutz on Wed, 2010-05-26 19:57

If a younger spouse kept the inherited IRA as a Beneficiary IRA in order to take normal distributions prior to her age 59 1/2, are there any restrictions to her rolling that into an IRA in her own name in 2010 and then converting some or all to a ROTH in the same year? She will be 59 1/2 by the end of Oct. 2010 but I believe that only matters for purposes of the distributions, not the conversion to an IRA in her name or to a ROTH. Is there any way to go straight from a Beneficiary IRA to a ROTH?

Thanks.



Submitted by Alan Spross on Wed, 2010-05-26 20:20

Yes, the sole beneficiary spouse can convert directly from an inherited TIRA to an owned Roth IRA.

She should be sure to first take out any distributions she needs to live on prior to October, since they will be penalty free.



Submitted by Gail Schutz on Wed, 2010-05-26 20:25

Thanks for info.



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