Conflicting Opinions on MRD and IRA to Roth Conversions


H

hr(bob) hofmann

I have been getting conflicting opinions on whether a 2010 conversion
of funds from a rollover IRA to a Roth IRA counts as part of the MRD
for 2010. I am inclined to think that it does not, but cannot find in
Pub 590 a definitive statement one way or the other. Help.
 
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A

Arthur Kamlet

I have been getting conflicting opinions on whether a 2010 conversion
of funds from a rollover IRA to a Roth IRA counts as part of the MRD
for 2010. I am inclined to think that it does not, but cannot find in
Pub 590 a definitive statement one way or the other. Help.

A distribution that is an MRD cannot be used to fund any other IRA.


So an MRD cannot be used as a conversion.


If you plan to do a conversion, first take the MRD, then using other
IRA moneys, do a conversion.
 
H

Herb Smith

I have been getting conflicting opinions on whether a 2010 conversion
of funds from a rollover IRA to a Roth IRA counts as part of the MRD
for 2010. �I am inclined to think that it does not, but cannot find in
Pub 590 a definitive statement one way or the other. Help.
If you are subject to a RMD in 2010, that amount must be withdrawn
prior to making any Roth conversion. Such funds cannot be converted to
a Roth. The amount of your RMD is determined by your age/life
expectancy factor and the balance in your traditional/rollover IRA on
December 31, 2009.

Because of the special waiver of RMDs for 2009, the above rule was not
in effect. No such waiver (currently) exists for 2010.

The statement you are looking for is included in the RMD section of
Pub 590 (page 33, 2009 edition).
 
D

D. Stussy

hr(bob) hofmann@att.net said:
I have been getting conflicting opinions on whether a 2010 conversion
of funds from a rollover IRA to a Roth IRA counts as part of the MRD
for 2010. I am inclined to think that it does not, but cannot find in
Pub 590 a definitive statement one way or the other. Help.
It doesn't because a conversion is not a distribution.
 
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