Inherited TIRA conversion
My mother died this year and left me with both an Inherited Traditional IRA and an Inherited Roth IRA. Can I do a conversion of some of the Inherited TIRA money into the Inherited Roth IRA? (I plan to withdraw the entire lump sum from the Inherited Roth IRA at the end of the 10 years, so that I can get as much tax free growth as possible of the converted money in the meantime). Thank you for the great work on this forum!!
Permalink Submitted by Alan - IRA critic on Thu, 2021-12-16 14:46
Sorry, but a non spouse inherited TIRA cannot be converted. While the 10 year rule does not have annual RMDs, you might want to develop a plan for how best to take distributions so there will not be a large tax hit at the end of the 10 year period. One possible plan if you are still working and NOT maxing out your contributions to the workplace plan is to take enough out of the inherited TIRA to max out your contributions. Pre tax contributions will offset the tax due on the inherited TIRA distributions.