Roth Conversion of Inherited IRA

An advisor asked me why his client could not do a Roth conversion of an Inherited IRA. I was tempted to reply as a parent might reply, “Because.” I resisted the temptation. What’s a better explanation? It also calls to mind the planning strategy to do an IRA to Roth conversion before death, when anticipated, when time. Does that make sense generally? Thanks. Paul McGilllivray
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  • A Roth conversion is defined as a distribution from the traditional IRA and a taxable rollover to a Roth IRA.  Since a non-spouse beneficiary is not permitted to roll over any distribution from an inherited IRA, a Roth conversion of the inherited IRA is not permitted.
  • A spouse beneficiary is permitted to roll a distribution from the deceased spouse’s traditional IRA over to their own IRA, so a spouse beneficiary could probably effect a conversion from the inherited IRA by making the rollover contribution to a Roth IRA.  However, it’s generally common that the spouse beneficiary would first assume ownership of the inherited IRA and then do a conventional Roth conversion.


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