Roth Conversions and Inherited Roth IRA RMDs: Today’s Slott Report Mailbag

Thursday, August 31, 2023

By Ian Berger, JD
IRA Analyst
Follow Us on X: @theslottreport

Question:

Hello,

If you do a Roth conversion from an IRA, does that qualify as your required minimum distribution (RMD) for the year? Or is it separate and apart from the RMD?

Thank you,

Arthur

Answer:

Hi Arthur,

You must always take your RMD first before doing a Roth conversion in a year when RMDs are required. That’s because the first dollars out of the IRA in an RMD year are considered to be your RMD. The RMD cannot be rolled over or converted. However, once the RMD is taken from the IRA, any remaining portion can be rolled over or converted.

Question:

Does a Roth IRA nonspouse (grandson) beneficiary have to take yearly RMDs, or he can take the entire distribution in the tenth year? Thank you for your help with this.

Asha

Answer:

Hi Asha,

Roth IRA beneficiaries who are subject to the 10-year payment rule are never required to take annual RMDs in years 1-9 of the 10-year period. Only beneficiaries of IRA owners who died on or after their RMD required beginning date must receive the annual RMDs. Since Roth IRA owners don’t have to take lifetime RMDs, they are always considered to have died before their required beginning date. Therefore, the entire amount can be withdrawn in the tenth year.

 

Post Views: 22
Posted in: , , , , , , ,

Content Citation Guidelines

Below is the required verbiage that must be added to any re-branded piece from Ed Slott and Company, LLC or IRA Help, LLC. The verbiage must be used any time you take text from a piece and put it onto your own letterhead, within your newsletter, on your website, etc. Verbiage varies based on where you’re taking the content from.

Please be advised that prior to distributing re-branded content, you must send a proof to [email protected] for approval.

For white papers/other outflow pieces:

Copyright © [year of publication], [Ed Slott and Company, LLC or IRA Help, LLC – depending on what it says on the original piece] Reprinted with permission [Ed Slott and Company, LLC or IRA Help, LLC – depending on what it says on the original piece] takes no responsibility for the current accuracy of this information.

For charts:

Copyright © [year of publication], Ed Slott and Company, LLC Reprinted with permission Ed Slott and Company, LLC takes no responsibility for the current accuracy of this information.

For Slott Report articles:

Copyright © [year of article], Ed Slott and Company, LLC Reprinted from The Slott Report, [insert date of article], with permission. [Insert article URL] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.

Please contact Matt Smith at [email protected] or (516) 536-8282 with any questions.