Can an inherited IRA be converted into a Roth IRA

Submitted by Ken L. Stone on Tue, 2023-05-23 20:45

Client inherited his father’s IRA. Dad was 88yrs. old when he died. The dad died 3yrs ago. Son has been taking out RMD’s based on his life expectancy. Son wants to know if he can convert some or all of the IRA into a Roth IRA???



Submitted by David Mertz on Tue, 2023-05-23 23:08

  • The tax code defines a Roth conversion as a distribution from the traditional IRA and a taxable rollover to a Roth IRA.  Because a distribution from this IRA inherited by the son is not permitted to be rolled over under any circumstances, it is not permitted to be converted to Roth.
  • The answer is different for an inherited employer plan like a 401(k).  The tax code permits direct rollovers from such an employer plan to an inherited IRA, so that direct rollover can be a taxable direct rollover from the traditional account in the plan to an inherited Roth IRA.

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