Suze Orman's Women & Money (And Everyone Smart Enough To Listen) Can I Transfer From an Inherited IRA to My Roth?
Mar 12, 2026
They discuss whether an inherited IRA can be converted to a Roth and clarify rules about required minimum distributions and taxes. They talk about using Roth contributions as accessible emergency funds and where to pull retirement living expenses from. They explain revocable trusts versus joint accounts and outline Medicaid’s five-year look-back and asset rules.
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Inherited IRA Cannot Be Converted To Roth
- Do not convert or transfer an inherited IRA into a Roth; required minimum distributions (RMDs) must be taken and taxed as ordinary income.
- You cannot roll RMDs directly into a Roth or treat them as Roth contributions unless you have separate earned income to fund a contributory Roth account.
Use Roth Contributions As Emergency Fund When Needed
- Do use Roth contributions as emergency savings if you lack a 12-month cash reserve because you can withdraw original Roth contributions tax- and penalty-free anytime.
- Contribute cash to a Roth then keep it in a stable vehicle inside the Roth so you can access it quickly if needed.
Pay Retirement Living Expenses From Traditional IRA
- Do withdraw retirement living expenses from traditional IRAs rather than converting that income to Roths when you need the money now.
- Withdraw from the IRA to live on and let your Roth accounts continue to grow tax-free for heirs and later tax-free income.