– I am inheriting around $30k from my Mom’s IRA. I intend to roll it into a Roth IRA.
– I am a professional trader (yeah call it day trading, but that’s not the point of the question, please). I intend to shelter the gains on those trades in the IRA, so I don’t have to pay the tax right now.
– I plan to take some distributions in a few years, well before retirement age.

Does this make sense?As I understand it – If I took the inheritance as a lump sum distribution I would get the 10% tax hit now, plus have to pay capital gains on each trade I make. Whereas if I roll it into a Roth IRA, I can trade without capital gains, until I take the distributions in years to come, probably at the same 10% tax rate in the future – no EXTRA penalty, right?

Ok Wayne is correct. Only a spouse can roll the money.


Thanks for the answers anyway.
Thanks, if I had time to read TWO books on the subject I wouldn’t be posting my question here. If you have actually read the books perhaps you could share your knowledge?

You should read "The Retirement Savings Time Bomb" and "Parlay Your IRA into a Family Fortune" by Ed Slott and consult with a CFA (Certified Financial Planner) before you "take possession" of the IRA. Doing that could save you thousands in unnecessary taxes.