Roth Conversion post 70.5
Anyone aware of any IRS rules in the necessary ordering/timing of a Roth conversion and RMD within the same tax year, does one need to come before the other?
Thanks.
Anyone aware of any IRS rules in the necessary ordering/timing of a Roth conversion and RMD within the same tax year, does one need to come before the other?
Thanks.
Permalink Submitted by Alan - IRA critic on Tue, 2016-07-12 15:10
Yes, the RMD must come first because the first distribution is always deemed to be credited to the RMD. Since a conversion is also a distribution, if you convert first you have essentially converted your RMD. The RMD is still considered completed, but an RMD cannot be rolled over and a conversion is also a rollover to Roth. That causes an excess Roth contribution, which must be removed from the Roth. Therefore, do not convert anything until the RMD is completed and then you can convert additional distributions.
Permalink Submitted by M T on Tue, 2016-07-12 15:41
Thank you.