No delay in taxation of IRA funds rolled-over to Roth if a required distributn?

Home Fairmark Forum Retirement Savings and Benefits No delay in taxation of IRA funds rolled-over to Roth if a required distributn?

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  • #4985
    rc77z
    Participant

    Am I correct that rolling over funds withdrawn as a Required Minimum Distribution from a traditional IRA to a Roth IRA (age 70 or over) will not shelter the rolled-over funds from being taxed in the year they are deemed distributed?

    “Post-Retirement Roth Conversion”

    Post-Retirement Roth Conversion

    #4988
    Alan S.
    Participant

    Distributions that are RMDs are never eligible to be rolled over or converted. If this occurs the distribution is taxable and an excess Roth contribution has been created and must be removed. Of course, even if the RMD is completed first as required and then additional amounts are converted, then both the RMD and the conversion will be taxable to the extent there are no non deductible contributions in the IRA.

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