RMDs all from Custodian A and Subsequent Roth Conversion from Different Custodian
I have traditional IRAs held by 3 different custodians. In the past I have satisfied my combined RMD obligations with a distribution from Custodian A. I intend to do the same this year but I also want to do a subsequent Roth conversion for IRA funds held by Custodian B.
I am concerned that Custodian B will deny the Roth conversion as they will assume I have not yet fulfilled my RMD obligation as there has not been a distribution from the IRA held by them.
Any suggestions as to how to proceed?
Thanks,
Ian
Permalink Submitted by Alan - IRA critic on Mon, 2024-10-07 13:24
You are OK as long as your total RMD for all IRA accounts has been distributed prior to any conversion from any of them. Since you indicated “subsequent” for the conversion there is no problem regarding the order to these transactions.
The custodian will probably not refuse a conversion, but if they do just indicate that your total RMDs have been satisfied from another IRA with a different custodian.