RBD, Roth Conversions, and the First Dollar Out
If you are 72 in 2022 year and plan to wait until April 2023 to take your first RMD, can you still do a ROTH conversion in 2022? Or does the first dollar out in 2022 need to be the RMD?
Thanks!
If you are 72 in 2022 year and plan to wait until April 2023 to take your first RMD, can you still do a ROTH conversion in 2022? Or does the first dollar out in 2022 need to be the RMD?
Thanks!
Permalink Submitted by Alan - IRA critic on Mon, 2022-11-21 17:52
The latter. If you plan to convert in 2022 the RMD must be distributed first. If not, the TIRA conversion distribution will be applied to the 2022 RMD, the RMD will be satisfied, but there will be an excess contribution to the Roth IRA to be removed. If you want to equalize your taxable income in 2022 and 2023, you would probably want to take your RMDs in each year, and after taking the respective RMD convert the desired amount each year. Many taxpayers benefit by completing their conversions before the first RMD distribution year, particularly if they retire a few years prior to age 72.