Conversion of traditional IRA to Roth during retirement
Can I convert a 403b IRA to a Roth while I am fully retired, after age 71 1/2, and if so, can I make subsequent contributions?
Can I convert a 403b IRA to a Roth while I am fully retired, after age 71 1/2, and if so, can I make subsequent contributions?
Permalink Submitted by Alan Spross on Tue, 2008-04-22 21:32
I think you have a traditional IRA that was rolled over from a 403b. You must start RMDs from the traditional IRA in the year you reach 70.5, and you cannot convert those RMD amounts. However, AFTER you take your full annual RMD, you can convert additional amounts to a Roth if your modified AGI is under 100,000. As of 2010, there is no longer an income requirement. For now however, if you qualify, you would be taxed on the total of your RMD and your conversion.
You can make regular Roth contributions as well without an age limit, however, there is an income limit and you must have earned income to make regular contributions. If you are fully retired, you will not have any earned income, so cannot make regular IRA contributions of any type.