I have read through the forums on this topic but would like to cross-check something my brokerage firm told me in terms of fixing a small mess I’ve created. I am over 70-1/2 and subject to RMDs, which is $25,000 for this year. Earlier this year, I converted $100,000 of my IRA to my Roth, but did so before taking the RMD. I now understand that was a no-no. Of course, the option to recharacterize back to an IRA is no longer an option. The brokerage firm has essentially recommended the following:

1. Remove $25,000 of my Roth (forgetting gains/losses for the moment) and have it done as a “removal of excess contribution.” They say this will essentially be equivalent to my having taken the RMD at the same time (I guess to be read as “prior to”) the conversion. I would remove this amount to my taxable account. As the account has gone done a bit since I’ve done the conversion, no additional tax to pay here. I gather this will generate a 1099-R, but with no tax cost implications. I don’t think there would be a form 5329 required since the removal of excess is happening in the same year as the excess contribution.

2. After that is completed, I could then convert another $25,000 to my Roth to reach my goal of converting $100,000 in total for the year. The 5498 for the Roth would then presumably show $125,000 (or would it be netted down to $100,000 because of the removal?)

After this is done, my net taxable position would be the same as if I had processed the $25,000 RMD first and then converted an additional $100,000 to my Roth.

Does this sound correct or should I be taking a different tack? I am hoping to not have to remove-as-excess all $100,000 of the converted amount this year, but rather, just the RMD amount.

Any input, advice, or suggestions greatly appreciated, and thank you in advance.