IRA and conversion to ROTH IRA
I have roll over IRA account and taking RMD. For 2024 can I CONVERT some to ROTH before taking full RMD for 2024? If i take existing stock as RMD and if value drops within 60 days if i want to transfer back stock with new lower value how it will be reported?
Permalink Submitted by PaulC on Thu, 2024-03-21 15:06
The full RMD for a year must be taken before a Roth conversion of any amount can occur.
You cannot undo a Roth conversion. This is called a Roth recharacterization. The ability to undo a Roth conversion via recharacterization was eliminated starting in 2018 with the Tax Cut and Jobs Act. The strategy you’re inquiring about is no longer allowed.
If you want to undo a regular IRA distribution that’s not a Roth conversion, meaning a distribution for an RMD or otherwise, under the provision for a 60-day rollover, it must be done in cash, not by contributing shares.