Roth conversion
I understand that the RMD has been eliminated for 2019 distributions (made in 2020). I assume then I could convert some of my traditional IRA account to my Roth IRA without worrying about the rule requiring RMD for those over 70 and 1/2 to be complete be converting to a Roth. Is this correct??
Permalink Submitted by Alan - IRA critic on Sun, 2020-03-29 14:34
Yes, that is correct. The 2020 RMD is also eliminated, meaning that 2020 will either be a lower tax year or an ideal opportunity for conversions of strategic amounts. That amount is not necessarily the same as your RMD would have been. Alternatively, if you need to save on taxes, elimination of the RMD(s) may not only reduce your marginal rate, but for some people would erase some of their SS income from being taxable and/or qualified dividents might drop down into the 0 bracket, which is close to the top of the 15% nominal bracket.