@tealover753 wrote:
Thank you.
Sorry,,,
So the inherited IRA which I am planning, and will begin RMD from next year , it is not considered distribution to me?
Which case will be reportable transfer...? between TRA to/from ROTH...?
Can I change to make inherited IRA to Assumed IRA before 59 1/2 if I changed my mind?
You have the option of keeping the inherited IRA as an inherited IRA (it will be titled something like "Jane Doe as beneficiary of John Doe") or of assuming full ownership (it becomes "Jane Doe's IRA").
If you want to keep the IRA as an inherited IRA, you need to start taking RMDs now (in 2023). Technically, the 2023 RMD is the one your spouse was required to take, and will be calculated according to his life expectancy. This is still a distribution to you and is taxable income to you, but there is no 10% penalty for early withdrawal even if you are under age 59-1/2. Starting in 2024, you take beneficiary RMDs calculated according to your life expectancy and the rules for beneficiary RMDs.
If you want to assume full ownership of the IRA by transferring it from an inherited IRA to your own IRA, you must first take your spouse's 2023 RMD (which is taxable to you). Then you can transfer ownership of the remaining balance to your name.
A direct transfer from an inherited IRA to your own IRA should not be reported. (Even if it is reported by mistake, it won't be taxable. If you assume ownership of a traditional IRA, that's not reportable, and if you assume ownership of a Roth IRA, that's not reportable. However, you mentioned a traditional IRA to Roth IRA. That's a taxable conversion (pre-tax IRA to Roth IRA is always a taxable conversion) and of course must be reported, although there is no 10% penalty for early withdrawal.
