RMD and ROTH conversions
With new tax law–does one still need to take RMD before conversion? Will it make a difference if only one IRA involved as opposed to more than 1 IRA source?
Does this actually only apply to 401k Roths? I am confused by the video wording.
Thanks, as usual. MBD
Permalink Submitted by Alan - IRA critic on Tue, 2013-01-08 19:21
The new law does not affect IRAs. It just allows a rollover from a pre tax 401k, 403b, or 457b to the Roth option in the plan. If you are still working at RMD age and not a 5% owner, you don’t have to take RMDs and can do these in plan rollovers without regard to the RMD. If you do it after retiring, then you must take out your RMD before doing the rollover. Also, note that if you are working at 70.5 and have a Roth 401k, you will have to take an RMD for the year you retire unless you can roll the Roth 401k over to a Roth IRA before the year you retire.