Ask the Editor, February 13: More Questions on IRAs

In this week's Ask the Editor Q&A, Joy Taylor answers four questions on inherited IRAs, Roth conversions and more. When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.You are now subscribedYour newsletter sign-up was successfulWant to add more newsletters?Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. 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This week she's looking at four questions on inherited IRAs, Roth conversions and more. (Get a free issue of The Kiplinger Tax Letter or subscribe.)Question: My son inherited his younger brother's Roth IRA in 2009 when he passed away. Did he need to clean out that IRA within 10 years? Joy Taylor: No, your son did not need to clean out the inherited IRA within 10 years. The 10-year rule applies only to certain IRAs inherited after 2019. The rule also doesn't apply when the beneficiary is older than the decedent. The exception is technically for beneficiaries who are not more than 10 years younger than the decedent and that would include an older beneficiary.Question: I'm planning on converting a portion of my traditional IRA to a Roth IRA this year. Do I have to first withdraw my annual required minimum distribution (RMD) before doing the conversion? Joy Taylor: Yes. People of RMD age who are planning a Roth IRA conversion must first take their full annual RMD for the year before doing the conversion.For people with multiple traditional IRAs, the rule that you must take your annual RMD before doing a Roth conversion for the year can be tricky. That’s because if a person has multiple traditional IRAs, the total aggregate RMD for the year must be withdrawn during the year before doing a Roth conversion from any of the traditional IRAs. (Note that this doesn’t include RMDs from 401(k)s or other workplace retirement plans.)Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special IssuesProfit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.Profit and prosper with the best of expert advice - straight to your e-mail.Question: I have a traditional IRA. Can my IRA invest in shares of master limited partnerships (MLPs)?Joy Taylor: Yes, and these types of investments are popular among certain IRA owners. But be wary of MLPs because of the potential unrelated business taxable income (UBTI) issues.MLPs issue Schedule K-1s to their owners (including IRAs), reporting the owner’s share of ordinary business income or loss. For IRAs, this income is generally considered UBTI, and the IRA may owe tax. If UBTI from all of an IRA’s investments exceeds $1,000, then the excess is taxed at a rate of up to 37%. The IRA, not the individual owner, uses Form 990-T to report and compute the tax, which is paid from available assets within that IRA. Most big IRA custodians handle the preparation and filing of the 990-T. For self-directed IRAs, the burden of filing the 990-T would fall on the IRA owner.I would speak with your financial advisor and a CPA before making any such investments. I'm not saying they are bad investments for IRAs — many people have MLPs in their IRAs. I'm just saying you should understand all of the potential consequences that might arise before you put such interests in your IRA.Question: I am 74 and still working. I have a traditional IRA and a Roth IRA. I currently contribute to my Roth IRA. Can I do a qualified charitable distribution (QCD) from my traditional IRA this year?Joy Taylor: Yes. For 2026, IRA owners who are 70½ or older can transfer up to $111,000 from their traditional IRAs directly to charity. QCDs count as part of one's RMD, but they are not taxable and they're not included in adjusted gross income. QCDs aren't deductible as a charitable contribution on Schedule A of Form 1040.A special rule applies for people who make deductible IRA contributions after 70½. Essentially, these post-70½ contributions reduce one's allowable tax-free QCD amounts until they are used up. Contributions to a Roth IRA are not deductible, so post-70½ contributions to a Roth IRA will not impact your ability to do a QCD.Subscribers of The Kiplinger Tax Letter, The Kiplinger Letter and The Kiplinger Retirement Report can ask Joy questions about tax topics. You'll find full details of how to submit questions in each publication. Subscribe to The Kiplinger Tax Letter, The Kiplinger Letter or The Kiplinger Retirement Report.We have already received many questions from readers on topics related to tax changes in the One Big Beautiful Bill, retirement accounts and more. We will continue to answer these in future Ask the Editor roundups. So keep those questions coming!Not all questions submitted will be published, and some may be condensed and/or combined with other similar questions and answers, as required editorially. The answers provided by our editors and experts, in this Q&A series, are for general informational purposes only. While we take reasonable precautions to ensure we provide accurate answers to your questions, this information does not and is not intended to, constitute independent financial, legal, or tax advice. You should not act, or refrain from acting, based on any information provided in this feature. You should consult with a financial or tax advisor regarding any questions you may have in relation to the matters discussed in this article.Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.Joy is an experienced CPA and tax attorney with an L.L.M. in Taxation from New York University School of Law. After many years working for big law and accounting firms, Joy saw the light and now puts her education, legal experience and in-depth knowledge of federal tax law to use writing for Kiplinger. She writes and edits The Kiplinger Tax Letter and contributes federal tax and retirement stories to kiplinger.com and Kiplinger’s Retirement Report. Her articles have been picked up by the Washington Post and other media outlets. Joy has also appeared as a tax expert in newspapers, on television and on radio discussing federal tax developments. Think you live in an at-fault car insurance state? These four still have some tricky no-fault insurance laws you should know about. I'm 62 and want to retire, travel and have fun, but my wife says we should get Medicare first. We ask wealth advisers for help. Attempting to conquer Medicare without a plan is risky. The safest route requires a thorough understanding of your options and never leaves decisions to chance. I'm 62 and want to retire, travel and have fun, but my wife says we should get Medicare first. We ask wealth advisers for help. Here is how to keep your Social Security number private in an age of aggressive cybercriminals. 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