IRA conversion during year of delayed RMD
I turned 72 this year(2022) and want to take my first RMD in 2023 by April1. Am I able to do a traditional to ROTH conversion this year (2022) since I don’t have to take my first RMD until 2023 or must I take the RMD this year in 2022 in order to do the IRA conversion in 2022?
Permalink Submitted by Alan - IRA critic on Mon, 2022-12-05 15:36
The latter. Because 2022 is an RMD distribution year even though you can defer it, if you want to convert this year you must complete the 2022 RMD first. You might take the RMD very soon and then request the conversion the following day. If you do nothing this year, and want to convert in 2023 you would be required to complete both year’s RMDs before converting, and that would leave you with 3 taxable distributions in 2023. That could drive up your marginal rate.