ONCE-PER-YEAR ROLLOVER RULE AND NEW LIFE EXPECTANCY TABLE: TODAY’S SLOTT REPORT MAILBAG

Thursday, January 27, 2022

By Ian Berger, JD
IRA Analyst
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Question:

My question relates to an IRA withdrawal that is then deposited as a Roth conversion. Will this withdrawal count as a once-per-year IRA rollover?

Thanks in advance for your wonderful advice.

Regards,

Peter

Answer: 

Hi Peter,

Thanks for the kind words. Roth conversions are not subject to the once-per-year rollover rule. Only traditional IRA-to-traditional IRA and Roth IRA-to-Roth IRA rollovers count.

Question:

My question is about the Uniform Lifetime Table. I started taking my lifetime RMDs in 2018 when I was age 70-1/2. So, for this year (I will be 74) I would be using the divisor of 23.8 using the old Uniform Lifetime Table. My questions is: Do I keep using that table, or should I use the new 2022 RMD Uniform Lifetime Table, therefore making the divisor 25.5? 

Sincerely,

Gary

Answer: 

Hi Gary,

You should switch to the new Uniform Lifetime Table and take advantage of the longer life expectancies, in your case, 25.5 for 2022. This will result in a slightly lower annual RMD.

 

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