Roth Conversion and Death soon after….
We have a situation where a person converted funds to a ROth, and died later in the year. Is there any type of penalty that could be assessed under “any condition” when this happens? IRS seems to think so??? But I do not!
Permalink Submitted by Alan - IRA critic on Thu, 2022-12-08 19:54
Are you referring to an underpayment penalty resulting from the final tax return? Or an excess contribution penalty if decedent converted their RMD? For the former, there is no stated death exception, but if the taxpayer was very ill prior to death, the penalty could be specifically appealed by the person responsible for filing the final return.