2010 RMD if Roth conversion before age 70-1/2?
I have a TIRA and my 70th birthday is in February, 2010. If I convert the entire TIRA to a Roth before I am 70-1/2 this year, will I still be required to take my first RMD based on the balance in the TIRA as of 12/31/09?
Permalink Submitted by Al Fry on Wed, 2010-01-13 18:32
Yes. “Since (you) turn 70.5 in 2010, this is (your) first RMD distribution year. And even though (your) RBD is not until 4/1/2011, because 2010 is a distribution year, any distribution taken this year is deemed to first satisfy (your) 2010 RMD. This means (you) have a choice of converting later or taking (your) RMD earlier, since the RMD must be first out. Since it appears that the conversion will be much larger, it may make sense to do this earlier rather than later.
2010 would be (your) first and last RMD if (you) convert the entire balance by 12/31/2010, and would then have no year end account balance in (your) TIRA to produce any more RMDs.” Partial quote from Alan’s respose to a similar inquiry on Monday.