IRA ROLLOVERS AND REQUIRED MINIMUM DISTRIBUTIONS: TODAY’S SLOTT REPORT MAILBAG

QUESTION:

At age 80, after I take my required minimum distribution (RMD), can I then do a rollover from my IRA to my Roth IRA? If I can, is there a limit as to how much? I know that it is all taxable.

Thanks,

John

ANSWER:

John,

Once your RMD has been satisfied, yes, you can then do a Roth conversion for whatever amount you want. There is no limit on how much can be converted. Just be aware that income from Roth conversions can impact things like income-related monthly adjustment amount (IRMAA) brackets.

QUESTION:

I turn 73 in October 2024. Do I have to wait until my birthday in October, when I actually turn 73, to take my RMD amount for the year? Or does any withdrawal I make in 2024 count towards the RMD?

Thank you,

Liliana

ANSWER:

Liliana,

You do not have to wait until your actual 73rd birthday to satisfy your RMD. The first dollars withdrawn from the account are deemed to count toward the RMD. So, any distributions you take in calendar year 2024, even if taken in the months before your 73rd birthday, will count toward your RMD for the year.

 

By Andy Ives, CFP®, AIF®
IRA Analyst

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