I read an article in Business Week that indicates you can convert an inherited traditional IRA to a Roth in 2009 - presumably because you don't have to take a distribution in that year. However, publication
590 is awful clear that you cannot convert an inherited IRA (from other than your spouse) to a Roth. Which is right?
My wife inherited an IRA from her father several years ago and I would love to convert it to a Roth in 2009, as our income will be unusually low this year.
If I cannot convert the inherited IRA to a Roth, I will simply take a full distribution in 2009 (the balance is around $10,000) and turn around and make a $5,000 contribution to a Roth IRA at the same time. That will effectively be a "do it yourself" conversion of an inherited IRA, although the amounts don't match exactly.
Thanks.