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Minimum Required Distribution to roth ?
Old 09-14-2014, 09:21 AM   #1
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Minimum Required Distribution to roth ?

Next year I will turn 70 in March, so Minimum Required Distribution will be required. 2 Questions:

1. Can I withdraw anytime during the calendar year
(Turn 70 in March, have CDs due before, in January

2. If I don't need the entire MRD amount, can I convert it to a Roth after
paying the tax ?
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Old 09-14-2014, 09:59 AM   #2
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Quote:
2. If I don't need the entire MRD amount, can I convert it to a Roth after
paying the tax ?
Can you put required minimum distributions into a Roth? - MarketWatch

Quote:
Q. My wife and I file a joint tax return, we are both over 70 years of age, and have had our IRA for over 20 years. Question: If we take up to $12,000.00 of Required Minimum Withdrawals from our IRA, can we move it after having taxes taken out into a Roth IRA? And, Can we then take money out of the Roth IRA as needed without having to leave the money for a certain period of time in the Roth IRA? If you can answer these two questions I would greatly appreciate it. Thanks — W.C.

A. None of the Required Minimum Distribution can be converted or otherwise deposited into a Roth IRA. Only amounts in excess of your RMD can be converted to a Roth IRA
.
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Old 09-14-2014, 10:11 AM   #3
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Originally Posted by bobbee25 View Post
Next year I will turn 70 in March, so Minimum Required Distribution will be required.

1. Can I withdraw anytime during the calendar year
(Turn 70 in March, have CDs due before, in January
You can withdraw anytime during the year you turn 70 1/2 (actually, you can wait until April 15th the year after you turn 701/2 to draw it). If you do that, you will have to draw twice that year though.

Some people wait until the end of the year and withdraw a lump sum, others, like me, have a monthly draw to my checking account.
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Old 09-14-2014, 11:45 AM   #4
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Originally Posted by bobbee25 View Post
Next year I will turn 70 in March, so Minimum Required Distribution will be required. 2 Questions:
2. If I don't need the entire MRD amount, can I convert it to a Roth after
paying the tax ?
Convert some/all from tIRA to Roth this year and you won't have as large an MRD next year.
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Old 09-14-2014, 12:07 PM   #5
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Just use the RMD money to pay the taxes on a different conversion which will of course cause more taxes to be paid.
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Old 09-14-2014, 12:22 PM   #6
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Unfortunately, us that are collecting SS and having to pull RMDs are faced with tax payment on both. The downside could be being over 70 and not having an IRA (or taxable account) to pull funds from.
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Old 09-15-2014, 04:49 PM   #7
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You can withdraw anytime during the year you turn 70 1/2 (actually, you can wait until April 15th the year after you turn 701/2 to draw it). If you do that, you will have to draw twice that year though.

Some people wait until the end of the year and withdraw a lump sum, others, like me, have a monthly draw to my checking account.
Yes, the 4/15 date of the following year only applies to the age 70.5 year. Every year after, like 71.5, must be done in the year of that age.
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Old 09-16-2014, 05:32 AM   #8
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Yes, the 4/15 date of the following year only applies to the age 70.5 year. Every year after, like 71.5, must be done in the year of that age.
It is April 1st, not April 15th!
Bruce
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