2009 Roth Conversion/RMD first?
I want to make a partial conversion of my 403b fund to a Roth. Normally a RMD must be taken first. With the RMD suspension in place for 2009, what is the IRS regulation?
I want to make a partial conversion of my 403b fund to a Roth. Normally a RMD must be taken first. With the RMD suspension in place for 2009, what is the IRS regulation?
Permalink Submitted by Alan Spross on Mon, 2009-01-05 19:15
Since the RMD is suspended for 2009, you can convert the first dollars out of the 403b to a Roth IRA. This can be done using either a direct Roth conversion or doing a direct rollover to a TIRA and then converting from the TIRA.
2009 is the last year that the 100,000 modified AGI limit applies to the above conversion methods.
Note: If 2008 was your first distribution year and you deferred it to 2009, then you must take out that 2008 RMD prior to converting any additional amount, and also prior to 4/1/09.