RMD after Roth conversion
I am 80 years old, with a traditional IRA of $300,000. I want to take my RMD for 2010, and then convert the remainder of the IRA to a Roth (in 2010). Will I have a required minimum distribution for 2011 or any year thereafter? I own no other IRA’s or deferred accounts.
Permalink Submitted by Alan Spross on Sun, 2010-05-23 17:18
As long as you convert the entire balance prior to year end 2010, there will be NO further RMDs required. This is true regardless of whether you defer the conversion income for two years or opt to report all the income in 2010.
For a conversion of this size, you will probably save taxes by deferring, but keep track of any tax rate increases Congress passes for 2011 and 2012. You will have until 10/17/2011 to make your final decision on whether to recharacterize all or part of your conversion and also whether you will take the two year deferral or report it all in 2010.