Understanding your options when you inherit an IRA is important because IRA money generally has never been taxed. This money passed on to your heirs will be taxed when they take the money out, and they must be in individual names and can't be jointly owned.
There are benefits to both the traditional 401k contribution and the Roth 401k contribution. The Roth contribution may be the most under-appreciated investing opportunity for the American taxpayer.
There are many mistakes that can be made when withdrawing money from retirement accounts. I call them Too Soon, Too Late, Too Little, and Too Much. Any of these violations can result in penalties in addition to taxes.
This is a critical decision and usually one that cannot be changed once recorded.
A faster way to get money into a ROTH IRA is to move some of your Traditional IRA money to your ROTH IRA. It is called a ROTH Conversion.
Because of the sensitive tax laws that come with a Traditional IRA it is very important that you know the rules and protect your IRA for yourself and your family.