No, you still don't understand things. The price for the transfer is the average of the high and low on the date the transfer occurs, not an instantaneous price. It is this average price which becomes your cost basis and determines if you have taken your full RMD.What you say may conform to the tax law. But it is not what Ameritrade had done. I transferred some money from my IRA to either my checking account and some shares to my margin account. I took the average price of the stock for the transfer day and subtracted it from the amount I still had to take out of the IRA to satisfy the RMD. I then sent the rest to my checking account. Now if I look at Ameritrade's web page, it says I still must take out $51 from the IRA to satisfy my RMD, and I did not make a mistake. And in the past, Ameritrade has been quite clear that I cannot convert anything from my IRA into my Roth-IRA until I have taken out the full RMD. This may not be federal law or IRS regulation, but Ameritrade enforces it.Additionally, I'm not aware of any broker that will restrict traditional->Roth conversions because an RMD hasn't been taken.Last year (during 2013) Ameritrade would not let me make the conversion to Roth until I had taken out the full RMD.It is your responsibility to make sure that you comply with the tax laws and the broker's responsibility to report what has transpired within the account(s).I agree. But Ameritrade seems to enforce a stricter policy to ensure that I convert nothing until after I take out their idea of what the full RMD is.If you convert too much and don't distribute enough to make your RMD, you will find out when you prepare your tax return or when the IRS sends you a penalty notice.I can think of many reasons why someone would want to do a Roth conversion early in the year, yet defer their RMD to the end of the year.As can I. But Ameritrade would not let me do it in 2013.
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