TIRA Internal Transfer Question
Have two TIRA accounts. Last week I did the RMD and then a ROTH CONV from ACCT #1.
Then internally transferred the remaining $100 of liquid cash to ACCT #2 in preparation
for doing ACCT #2 RMD. Anything improper about this transfer? Thanks CW
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Permalink Submitted by Alan - IRA critic on Tue, 2020-02-18 15:45
Not a problem. The RMD for Acc 2 is based on the 12/31/2019 value and the transfer does not affect it. You did not have to complete the full RMD for both accounts before converting Acc 1 or transferring the balance to Acc 2, and you still have until 12/31 to complete the remainder of your RMD.
Permalink Submitted by CARROLL WILLIAMS on Tue, 2020-02-18 16:20
Thanks Alan. Just was concerned the transfer might be called an excess contribution. CW
Permalink Submitted by Alan - IRA critic on Tue, 2020-02-18 16:57
No, it will not be reported as a contribution and should not be reported on a 1099R since it was done by a direct trustee transfer.