RMD before Roth Conversion – but does this apply for RMD from inherited IRA / Roth conversion from Traditional IRA?
This year I will take an RMD from an inherited IRA, and I will also do a Roth conversion from a SEP-IRA. I understand that for my own Traditional/SEP/SIMPLE-IRAs, 401(k), 403(b), etc. I must complete the aggregated RMD before doing any Roth conversions.
But the inherited IRA is a completely separate arrangement, right? So I can delay the RMD from the inherited IRA until December, while doing the RMD (if necessary) and then Roth conversion(s) from the other accounts earlier in the year?
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Permalink Submitted by Alan - IRA critic on Sun, 2021-02-21 18:41
You are correct. The inherited IRA is separate in all respects from your owned IRAs. You can complete the inherited IRA RMD after you converted from your owned IRA. Note that the RMD aggregation rules apply separately to your OWNED TIRA, SEP or SIMPLE IRAs as one group, 403b plans as another group, and each individual 401k plan as it’s own separate group. One group’s RMDs cannot be aggregated with those of a different group. Inherited account RMDs cannot be aggregated with owned accounts.
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