Required RMD on 2010 Roth conversion
My client will not be 70 1/2 until July 20, 2010. He wants to convert his traditional IRAs to a Roth IRA now, March 31, 2010. Since he is not yet 70 1/2, but it is the year in which he will turn 70 1/2, is he required to take an RMD before converting?
If so, how do we get his present custodian to issue him a check since he is not yet 70 1/2?
Permalink Submitted by Alan Spross on Mon, 2010-03-29 21:21
He must take the RMD before converting beginning IN THE YEAR he turns 70.5. The first distributions in any RMD year are deemed to constitute the RMD, and you cannot convert an RMD to a Roth without creating a failed conversion.
The IRA owner is entitled to a distribution any time he wants it, whether it is an RMD or not. So all the client has to do is ask for that amount to be distributed, and if he needs help calculating the RMD, most custodians can provide that help.