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Here at Chadmere Capital Inurance and Financial Services, we are adhering to state and local guidelines in order to protect both the health and safety of clients and staff. Keeping our clients and staff safe is our highest priority and we’re taking all appropriate measures to ensure a safe environment. Should you prefer to not meet face-to-face, we are continuing to serve our clients through virtual settings such as Zoom or phone calls.

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INHERITED ROTH IRAS AND ROTH CONVERSIONS: TODAY’S SLOTT REPORT MAILBAG

By Sarah Brenner, JD
Director of Retirement Education

Question:

Does the SECURE Act have any implication to Roth IRA account inheritance longevity? Please let me know.  Thank you.

Regards,

Vikram

Answer:

Hi Vikram,

The SECURE Act does affect inherited Roth IRAs in the same way it affects inherited traditional IRAs. Most beneficiaries who inherit a Roth IRA in 2020 or later will be subject to a 10-year payout period.

Question:

Hi Ed,

I just want you to know that I have all of your books which I refer to whenever I have a question about IRAs or retirement planning. However, there is one subject I could not find an answer to in any of your books.

My wife has a traditional IRA, but she does not have a Roth IRA. She has been retired for a number of years now, and would like to open a Roth IRA with a conversion from her traditional IRA. Can she do this?

Thank you,

Tony

Answer:

Hi Tony,

This is a question that seems to come up frequently. While there is a requirement that an individual (or their spouse) have earned income to make a tax year contribution to a traditional or Roth IRA, there is no such requirement to do a conversion. An individual with no earned income can convert an existing traditional IRA to a Roth IRA with no issues.

https://www.irahelp.com/slottreport/inherited-roth-iras-and-roth-conversions-todays-slott-report-mailbag

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