RMD Timing
Hello-
An individual has a 401k (not connected to the current employer) but no other IRAs. They are 75 and still working. They are wanting to complete the Backdoor Roth.
My understanding is if they make a non-deductible contribution and conversion in the same year no RMD is required from the IRA since prior year balance was zero. Is that accurate?
Also, they do have an RMD requirement from the 401k. This RMD from the 401k does not have to be taken prior to the IRA conversion correct?
Thank you!
Permalink Submitted by Alan - IRA critic on Wed, 2022-01-26 19:53
The 401k RMD has no effect on IRA transactions. A non deductible TIRA contribution can be made and then converted in the same year without triggering an IRA RMD for that year due to no prior year end IRA balance.