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RMD can NOT be put into a ROTH CONVERSION

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    RMD can NOT be put into a ROTH CONVERSION

    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.
    Last edited by dyne; 03-28-2010, 10:35 AM. Reason: more

    #2
    Originally posted by dyne View Post
    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
    This post is for discussion purposes only and should be verified with other sources before actual use.

    Many times I post additional info on the post, Click on "message board" for updated content.

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