A recent IRS notice seems to permit beneficiaries of inherited retirement plans and IRA's to convett those inherited accounts to a Roth IRA. Notice 2008-30 provides guidance about the distribution provisions of the Pension Protection ACt of 2006. Prior to this Notice, only spousal beneficiaries had this option, via the spousal IRA rollover privilege. Non-spouses did not have this option. "If you inherited a traditional IRA from someone other than your spouse, you cannot convert it to a Roth IRA." IRS Publication 590 (2007).