Definitive Guide to Required Minimum Distributions for Baby Boomers

Submitted by Richard Rea on Fri, 2017-02-03 19:33

Turning 70 this April and now facing the MRDs.

Q. Can I move the total MRD funds for this year (~$50k) to a Roth IRA and pay the taxes from “other monies”?

I just starting reading “The Definitive Guide to Required Minimum Distributions for Baby Boomers” is your 40+ page online authority on the foundational principles and detailed strategies that will allow you to answer key questions and position yourself as an expert with the very first Boomers about to take RMDs in 2016.



Submitted by Alan - IRA critic on Fri, 2017-02-03 20:40

  • No, RMDs are not eligible for rollover and a Roth conversion is a distribution and rollover. Since you turn 70.5 in 2017, the first distribution you take this year is applied to your RMD. Therefore, if you want to convert to a Roth IRA you first must take out the 50k RMD, and then you can convert any additional amounts you wish. You also have the option to defer your 2017 RMD till 4/1/2018, but that usually is not helpful because you then will have to take out 2 taxable RMDs in 2018.
  • A Roth conversion is beneficial only if you can do it at a lower marginal rate than your future rates going forward. That usually means that converting before the year you reach 70.5 and better yet before you take SS benefits works better than converting at this point. If you do decide to convert from here out, it would normally be small amounts that would not further increase your marginal rate. Or perhaps you are just asking about conversions because you have to take out the RMDs anyway.

Add new comment

Log in or register to post comments