Permalink Submitted by Jose Morales on Tue, 2010-09-21 16:25
If you are over 71 year old then you were not allowed to convert your entire IRA balance without first taking your RMD. At this point it appears you have converted more than you are allowed, effectively making an excess contribution to your new Roth IRA. You have until your tax filing due date, plus extensions to remove the excess contribution plus any earnings attributable to the excess or face a 6% tax penalty on the excess amount.
Permalink Submitted by Jose Morales on Tue, 2010-09-21 16:25
If you are over 71 year old then you were not allowed to convert your entire IRA balance without first taking your RMD. At this point it appears you have converted more than you are allowed, effectively making an excess contribution to your new Roth IRA. You have until your tax filing due date, plus extensions to remove the excess contribution plus any earnings attributable to the excess or face a 6% tax penalty on the excess amount.