Plans for IRAs in 2018

Have 3 small IRA accounts i.e. A, B, and C and would like to know if I could make the following moves.
#1 At a/c A Early in JAN remove RMD just for a/c A and do ROTH CONV
#2 At a/c A Later in year distribute enough to satisfy RMD for a/c B and C
#3 At a/c C Anytime after step 2, complete Roth CONV
Thank you



  1. Yes, the RMD for A must be completed first, before the conversion. See Reg 1.408-8 Q4 and note that the RMD only for “that IRA” must be completed before converting. RMD for other IRAs do not need to be distributed yet. The convesrion could be quite sizeable, and A could be managed by non reportable transfer to hold the ideal balance on prior 12/31 so that the RMD would not be too large.
  2. OK per RMD aggregation rules.
  3. OK  since total RMDs for all have been completed first.

Thank you Alan for the quick answer.

I would like to ask a personal question about my IRA traditional account saving haw I can use part of it for a down payment on buying a new home as a first time buyer without paying much taxes on the drawn amount what shall I do I appreciate your help I am 70+ years old still working, I got the books ofMr Ed Slott’s recently but they don’t explain what to do to be exempted from taxes if you draw an amount of a traditional IRA accountThanks a lot for your prompt reply and outstanding support to the seniors like meBest regards and God blessFrank Hourani

  • The first time home buyer exception only waives the penalty, it does not waive the ordinary income tax on the distribution. But you are over 59.5, so do not have a penalty to begin with, and therefore the first home purchase will not reduce the tax on your IRA distributions. 
  • Even though you are still working, your TIRA RMDs start in the year you reach 70.5. The first distribution you take is deemed to apply to your RMD each year. You can use that money for anything you wish including the home purchase. But if you need to take out more than your RMD, you will be taxed on both the RMD and the additional amount you withdraw. 
  • Obviously, the additional amount you take out this year will reduce your year end balance and future RMDs to some extent. 
  • Your workplace plan such as a 401k does not require you to take RMDs from it as long as you are still working at the end of each year and are not a greater than 5% owner of the company. But this exception does not apply to IRA accounts.

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