RMD can NOT be put into a ROTH CONVERSION

[dyne]

For two years a client has been planning to convert a large amount of a traditional IRA's to
a ROTH or to make a ROTH CONVERSION. Recently I learned that he was planning to
convert his required minimum distribution into a ROTH CONVERSION, which is NOT
allowed. He has been waiting for this year: 2010 since the $100,000 income restriction
has now been eliminated. Only the EXCESS of pension or IRA distributions in EXCESS
of the required minimum distribution may be rolled over or put into a ROTH CONVERSION.
We need to watch for this. And do not assume that a large amount of retirement, etc.
distribution is in excess of RMD. A person could receive a RMD of $40,000 or more.

[BOB W]

For two years a client has been planning to convert a large amount of a traditional IRA to
a ROTH or to make a ROTH CONVERSION. Recently I learned that he was planning to
convert his required minimum distribution into a ROTH CONVERSION, which is NOT
allowed. He has been waiting for this year: 2010 since the $100,000 income restriction
has now been eliminated. Only the EXCESS of pension or IRA distributions in EXCESS
of the required minimum distribution may be roller over or put into a ROTH CONVERSION.
We need to watch for this.

Good point! Thanks