CONVERSION TO ROTH UNDER THE TEN YEAR RULE
MY WIFE (D.O.B. 11/50) DIED IN FEBRUARY OF THIS YEAR. IF I SELECT THE TEN YEAR RULE, WILL I BE ALLOWED TO MAKE TIRA TO ROTH CONVERSIONS UNDER THAT OPTION?
MY WIFE (D.O.B. 11/50) DIED IN FEBRUARY OF THIS YEAR. IF I SELECT THE TEN YEAR RULE, WILL I BE ALLOWED TO MAKE TIRA TO ROTH CONVERSIONS UNDER THAT OPTION?
Permalink Submitted by Alan - IRA critic on Tue, 2021-06-29 04:00
Sorry to hear of your loss. You could elect the 10 year rule, and do conversions through year 9, but it probably is not the best choice. Are you considerably older than her?
Permalink Submitted by MICHAEL DOHRING on Thu, 2021-07-01 18:25
Thank you for your reply. I am 72 and currenly receiving RMD’s which I will be taking as a QCD to keep income lower to maximise this year’s conversion. My objective is to maximise future conversions without RMD’s pushing income into higher brackets.
Permalink Submitted by Alan - IRA critic on Thu, 2021-07-01 21:11
That should work. For example, if you plan to convert the entire inherited IRA, you have 10 tax years (2021 – 2030) to do incremental conversions without other RMDs in those years. Come 2031, if there is any amount remaining in the inherited IRA, you could elect to assume ownership of it, and your 2031 RMD would be calculated using the Uniform Table.