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J
jhambric
February 23, 2025
Question

I inherited an IRA & it needs to convert to a Roth. We took a dist that combined the 2024 max & applied a "catch up" dist to the 2023 max. Program says I owe a penalty.

  • February 23, 2025
  • 1 reply
  • 0 views
How do I account for the catch up distribution in the software? I know a penalty is not appropriate.

    1 reply

    SusanY1
    SusanY1
    March 1, 2025

    Are you a spouse beneficiary of the Inherited IRA?  Only a spouse beneficiary can convert an Inherited IRA to a Roth.   However, to do that the spouse must first put the Inherited IRA into their own name.  A direct conversion from an Inherited IRA is not possible and may be why a penalty is showing. 

    Where and what type of penalty are you seeing?  Also, what codes are in Box 7 of the 1099-R?

     

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