RMD required in year of retirement?
I’m over 75 and have a 403b where I work. I’ve rolled over everything I can to Roth IRAs; what’s left is the “company contributions” that I can’t touch until I retire. Being still employed, I haven’t had to worry about RMDs so far. If I retire in June of this year, will I need to do a RMD of the 12/31/22 balance before I can do a rollover/roth conversion of the balance?
Permalink Submitted by Alan - IRA critic on Wed, 2023-01-25 21:28
Yes, you will. And if you complete any rollover before separating from service, the amount that represents your RMD will be treated as an RMD and become an excess IRA or Roth IRA contribution because you cannnot roll over a RMD. This isn’t that costly, but creates a hassle when you file your return because you will not be reporting according to the 1099R.