RMD + Roth Conversion
Unique situation here. So an RMD was due for 2019, however prior to completing the RMD, a Roth Conversion was done which moved all the money from the Traditional to the Roth. Now the Traditional has a $0 balance but an RMD is still due by Dec 31st. When I called the broker dealer they said the IRS changed the rules and after 2018 a Roth Conversion could not be reversed. Thus now what do I do when this RMD needs to be satisfied by year end but there is no balance in the account? A 2019 contribution has already been made and the Traditional IRA has been maxed out, so an additional contribution cannot be made and then use that money to process the RMD.
The broker dealer said I need to complete an IRA distribution form from the Roth IRA, and do an excess contribution. But they said that money cannot be put into the Traditional IRA without it counting as a contribution, and thus they advised the money go into a taxable account. I do not see how this will help the current problem though. I would appreciate any suggestions!
Permalink Submitted by David Mertz on Wed, 2019-11-06 21:17
Permalink Submitted by Josh Rigden on Thu, 2019-11-07 21:16
Excellent! Thank you so much!