Roth conversion = 70-1/2
Can an investor convert the full value of the IRA to a Roth in the year in which he turns 70-1/2 and choose to “defer” the RMD until the next year, or must the RMD still be withdrawn before conversion?
Can an investor convert the full value of the IRA to a Roth in the year in which he turns 70-1/2 and choose to “defer” the RMD until the next year, or must the RMD still be withdrawn before conversion?
Permalink Submitted by Alan Spross on Tue, 2010-07-06 20:09
The RMD must still be taken out prior to conversion.
That means that either the RMD must be taken earlier or the conversion delayed longer than planned. Often it makes sense to let the larger dollar amount (RMD vrs conversion) determine the timing.