Roth Conversion by husband?
Hi
My client (Mike) had created a non deductible IRA in 2023. He did not convert it to a Roth IRA yet because he was unaware of the Back Door Roth strategy. We suggested he now convert but his wife (Robyn) just inherited an IRA from her mother.
Does the fact that she has a inherited IRA prevent him from doing a Roth conversion due to the pro rata rule? They file married filing jointly.
Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2024-12-30 13:33
No.
Pro rata rules do not apply between spouses, and they also do not apply between inherited IRAs. Therefore, even if he was the one that inherited an IRA, he can still convert his own IRA and the inherited IRA does not affect that conversion because the value of it is not included on line 6 of Form 8606 on which he would report the conversion.
Permalink Submitted by Don Hannahs on Mon, 2024-12-30 13:59
Thanks much appreciated.