Conversion from IRA to Roth
What is the age limit for conversion? I will be 70 in fall . I convert every month from my IRA to Roth can I continue do it till the age of 70 and 1/2 , should I stop do it at the month I will turn 70 or should I stop do it at the year I will turn 70 and 1/2 ( from January 2018)
Permalink Submitted by Alan - IRA critic on Sun, 2017-04-02 02:12
There is no age limit. However, beginning in the year you reach 70.5 you must complete your RMD before doing a conversion. Both the conversion and the RMD will be taxable, so the best years to convert are those prior to the year you reach 70.5. Note that the actual day you reach 70.5 does not matter, so if you will reach 70.5 in 2018 you must complete your 2017 RMD before any conversions are done. That means that you must stop the monthly conversions in Dec, 2017 unless you plan to take out your full annual 2018 RMD on the first business day of 2018,