Roth Conversion with RMD
Client wants to convert $15,000 and has $4,000 RMD. They have already distributed $15,000 from IRA in single transaction. Can they convert $11,000 now and then convert $4,000 in a separate transaction?
Client wants to convert $15,000 and has $4,000 RMD. They have already distributed $15,000 from IRA in single transaction. Can they convert $11,000 now and then convert $4,000 in a separate transaction?
Permalink Submitted by David Mertz on Fri, 2024-03-08 21:49
If it has been less than 60 days since the distribution from the traditional IRA of the $15,000 that includes the $4,000 RMD, $11,000 can be deposited into a Roth IRA as a Roth conversion as long as the $4,000 satisfied the client’s total RMD for the year for the client’s traditional IRAs. Any amount of additional Roth conversions can be done before year end.