I have a question I want to run by the forum to ensure I am thinking is accurate about a second generation inherited IRA and Roth conversion of assets from that second generation IRA.

Fact pattern: The original IRA owner died in early 2020 at age 62 (prior to her RMD age) and that IRA was opened for 10+ years. The person who inherited the IRA was a non-spouse to the original owner.  This first generation owner was already RMD age in 2020. This first generation inherited IRA owner died in 2024 and his spouse was the named of the inherited IRA.  I think that the fact that the original account owner and the 1st generation beneficiary was a non-spousal relationship means the “non-spouse” characterization of that IRA continues to be in effect. Consequently, the spouse of the 1st generation inheritor cannot treat this inherited IRA as an spousal inherited IRA and accordingly, the spouse is not eligible to do Roth conversions from what is now a second generation inherited IRA.

Is my understanding of the rule correct in this case?

Thank you,

Austin