RetireNet.com

The Retirement Net Premier retirement living featuring retirement communities and retirement homes in planned active developments. Worldwide resource for active retirement senior communities, rv/resort homes, vacation homes and assisted living facilities. The Retirement Net is the most comprehensive resource of premier retirement communities throughout the world featuring site built homes, manufactured homes, assisted living facilities, planned active retirement communities and various retirement properties worldwide. See also: senior housing, retirement communities, retirement living, elder care network.

Welcome, Guest!   Sign InSign Up

Search by Location & Lifestyle...

Search

Or use our Advanced Search for either Communities or Homes

Search for listings in CanadaGo to Saved Searches

Not a member yet? Sign up today!

Sign Up Sign Up

Find out more about the benefits of becoming a RetireNet.com member!

Converting Inherited Assets to a Roth IRA

Add Article To Favorites Add to Favorites   Share  Recommend 0 Recommendations

Posted July 29, 2009

You are a non-spouse beneficiary and you've inherited an IRA or employer plan assets. Can you convert those assets to a Roth IRA? The answer is yes and no.

Yes
Inherited employer plan assets (401(k), etc.) can be directly transferred to a properly titled, inherited Roth IRA. Income tax will be due on the amount converted and must be paid by the beneficiary doing the conversion. Since the funds are in an inherited Roth IRA, required distributions to the beneficiary begin in the year after the plan participant's death. For 2009, the employer plan is not required to offer this option. In 2010 it will become mandatory for the plan to allow a transfer to an inherited IRA or Roth IRA.

No
Inherited IRAs, on the other hand, cannot be converted to inherited Roth IRAs. Only the IRA owner (the person who made the IRA contributions) can do the conversion.

Spouses
A spouse can always move the funds inherited from the deceased spouse to his or her own IRA and then do a conversion to a Roth IRA.

Ed Slott and Company has been called "The Best" sources for IRA advice by The Wall Street Journal, and "America's IRA Experts" by Mutual Funds Magazine. Ed is a widely recognized professional speaker and author. The company’s website is IRAHelp.com.

 

Comments (0)

Add A Comment

Want to leave a comment? Sign in.

 
America's Top 100 Best Master-Planned Communities

My Saved Searches

Sign In or Create your free account to see your saved searches.