Traditional IRA RMD to Roth
Can a 70 1/2 yr old convert a part of his traditional IRA to a Roth and use the converted amount to satisfy his RMD?
If so, does this change in 2010 when the income limits for conversion are removed?
Can a 70 1/2 yr old convert a part of his traditional IRA to a Roth and use the converted amount to satisfy his RMD?
If so, does this change in 2010 when the income limits for conversion are removed?
Permalink Submitted by Alan Spross on Wed, 2008-11-12 19:15
No, an RMD is not eligible for rollover and a Roth conversion is a rollover. In addition, since the first distribution of an RMD year is deemed to include the RMD, the RMD must be taken first. After the RMD is taken, any additional amount the taxpayer chooses can be converted. This does not change in 2010, since the 2010 changes only relate to income limits for conversions.
Permalink Submitted by Robert Wright on Wed, 2008-11-12 19:37
Thanks Alan.