5 year Roth IRA conversion rule
Trying to figure out if the 5 year conversion rule has not yet been satisfied and the Roth IRA owner passes away, does the beneficiary still need to adhere to the 5 year rule clock or is that waived/forgotten due to being inherited?
Permalink Submitted by Alan - IRA critic on Wed, 2025-02-12 17:25
Because inherited Roth distributions are penalty free due to death, any 5 year conversion holding periods ended at death.
That said, the 5 year holding period for the Roth earnings to be qualified remains a requirement until 5 years from the year of the first Roth contribution has passed.