I've come across conflicting thoughts on this, and wanted to see what other WCIs think...
My wife inherited part of an IRA from her grandmother (current value ~$8600), and we've been taking RMDs for the last two years. As a non-spouse beneficiary, I know she can't directly convert this to a Roth, but I'm wondering if it might make sense to take the entire distribution now, pay taxes, and then max out our Roth contributions. Taking the lump sum won't bump us into the next tax bracket, and I finish residency in 2019 so our salary/tax bracket will jump next year.
My wife inherited part of an IRA from her grandmother (current value ~$8600), and we've been taking RMDs for the last two years. As a non-spouse beneficiary, I know she can't directly convert this to a Roth, but I'm wondering if it might make sense to take the entire distribution now, pay taxes, and then max out our Roth contributions. Taking the lump sum won't bump us into the next tax bracket, and I finish residency in 2019 so our salary/tax bracket will jump next year.
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