Q&A of the Week - July 15, 2020

Since you inherited an IRA from your spouse, when you receive the funds, you can create a Roth IRA. However, once the IRA is created as an inherited IRA, it cannot be converted to a Roth IRA. 

Following are the steps to take to convert the IRA to a Roth IRA: 

1. Notify the IRA trustee that you want to convert the IRA to a Roth IRA. 

2. Once the trustee completes the paperwork, complete Form 8606 Non-deductible IRAs to document and calculate the taxable amount. 

If you received the IRA from someone else (non-spouse), you would not be able to convert it to a Roth IRA.