Message Font: Serif | Sans-Serif
No. of Recommendations: 1

{{{OK. i thought the point of RMD was to get the taxes from the the IRA sooner .

moving to Roth would still get the tax.}}}

<<<The IRS do not care: you still cannot do it. It makes sense to me that it should be OK, but making sense and IRS regulations are not normally discussed in the same sentence.>>>

"i'm an outlier ..IRS usually does make a kind of sense to me.*

usually, i can see where if the rule were different, someone could take advantage /Or someone would lose advantage.

.. i don't really see either with the "convert IRA to Roth OK; convert RMD to Roth not OK" "

I will take a shot at this.

RMD is a required minimum distribution, and when taken, it is outside of any IRA umbrella. In addition, the amount of the RMD for any given year (other than the initial year for those with birthdays later than June 30, who have a delay and double up option) is fixed as of December 31 of the prior year.

Convert is a term of art and conversions can only be done on funds within and IRA.

Given that RMD amount is fixed as of prior year (subject to . . .) and that RMD is outside of IRA umbrella, it cannot be converted because conversion is oly for amounts in the IRA umbrella.

As a reminder, Roth IRAs do not require RMDs.

Regards, JAFO
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.