Roth conversion with inherited IRA funds?
I think I know the answer to this question but I want to be sure. Can a beneficiary of an inherited IRA convert to a Roth? the last info I have is no. Thank you in advance for your help.
I think I know the answer to this question but I want to be sure. Can a beneficiary of an inherited IRA convert to a Roth? the last info I have is no. Thank you in advance for your help.
Permalink Submitted by Alan Spross on Mon, 2012-01-30 16:44
A non spouse beneficiary cannot convert to an inherited Roth.
However, there is a possibility this will change in the future because a non spouse beneficiary of an inherited qualified plan CAN convert to an inherited Roth IRA. This suggests that the next increase in portability could include extending this option to inherited IRA owners at some point. Of course, RMDs would not be changed if that happened, just the taxation of those RMDs.