Roth Conversion, federal withholding RMD

Submitted by Kevin Petras on Thu, 2022-12-15 15:38

I am over 65 and have an RMD of $120,000. I’ve taken $114,000 so far
I plan on doing a Roth conversion of $21,000 and having $6,000 of federal withholding from this.

Does the $6,000 qualify as RMD for my purposes and so serves to satisfy the full $120,000 RMD? Or does the $6,000 attach in a sense to the Roth conversion and so can’t be considered part of the RMD?



Submitted by Alan - IRA critic on Thu, 2022-12-15 16:45

  • I think you meant that you are over 72, not 65. Yes, the withholding on the conversion will complete your RMD. It is not part of the conversion as it is not converted, rather sent to the IRS.
  • Despite being a single distribution, the custodian and IRS should not have a problem treating the withholding as distributed first, before the conversion, with none of your RMD being converted. 

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