First year’s RMD spread over two calendar years and a Roth conversion
Hello Alan et al,
Can someone split her first year’s RMD between 2024 & Q1 2025 but do a Roth conversion in 2024? Or, does she need to complete her first year’s RMD in 2024 in order to do a Roth conversion in 2024? For example:
Cindy turned 73 this year and has a RMD of $94,000. Can she do it this way?
2024
$87,000 RMD
$27,000 Roth conversion
Q1 2025
$7,000 remaining RMD for 2024
Thanks,
Chris
Permalink Submitted by Alan - IRA critic on Sun, 2024-12-22 10:57
Chris, no the 2024 RMD must be 100% completed before doing any Roth conversion in 2024. This applies for every year.
Some of the 2024 RMD could be deferred to 2025, but then both the remaining 2024 RMD (due by 4/1/25) and the 2025 RMD would have to be completed before doing any 2025 conversion.
Therefore, for most taxpayers, conversions are best completed prior to the first RMD year, and even better prior to claiming SS benefits, since they will usually be in a lower bracket those years, and every conversion will then reduce RMDs from the start.