Non Spousal Beneficiary of a Roth IRA
We have a client who will be converting an IRA to a Roth and will be doing the conversion in stages. Based on their ages we are concerned about the tax effects to the beneficiary if the owner passes before the five year holding period. The client will convert 50K in year one and 50K in year two and the remainder in year three…if they should pass during year 3 what tax will the non spousal beneficiary be facing?
Permalink Submitted by Alan - IRA critic on Wed, 2017-07-05 17:58
Does the client already have a Roth IRA or will these conversions be his first Roth contribution of any kind? As indicated in your other post, there are two different 5 year holding periods for Roth IRAs.