Inherited beneficiary IRA

Submitted by Michael Gugliotti, Jr. on Thu, 2014-10-16 20:41

I currently have an inherited non-spousal beneficiary traditional IRA without any basis. I do not have any other traditional IRAs. I would like to make a 2014 non-deductible contribution to a new traditional IRA and subsequently convert this amount to a Roth IRA. When I make the conversion to the Roth IRA account do I have to include the value of my inherited IRA when calculating the taxable portion of the conversion? Or do ignore the value of the inherited IRA?



Submitted by Alan - IRA critic on Thu, 2014-10-16 23:00

Ignore it. The Form 8606 calculation of the taxable portion of your conversion only includes IRAs you own, not those you maintain as the beneficiary.

Submitted by Michael Gugliotti, Jr. on Fri, 2014-10-17 12:51

Thanks!

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