Walter Gassner
Nov 20 2002, 10:39 AM
I am a beneficiary of my father's Roth IRA...can I roll it over into my Roth IRA without a tax consequence, or do I have to pay tax on his money??
Please email me at
wgassner@bigfoot.com
Thank you...
Walter:confused:
Mary Kay Foss
Nov 20 2002, 01:42 PM
If you inherit a Roth IRA, you cannot roll it over to your own IRA. Distributions from a Roth IRA are 100% income tax free if the account has been around for 5 years. If the account hasn't been in place for 5 years and it's completely cashed out, the earnings are taxable. The earnings are subject to tax after the Roth contributions and IRA to Roth conversions are withdrawn. The way that market has been lately, many Roth's don't have any earnings at the present time.
The rules are different if you inherit a traditional rather than a Roth IRA.