You can not take the RMD and convert it to a Roth. A Roth Conversion occurs when you take a normal distribution from the IRA, pay the taxes either with a portion of the distribution or from other sources of money, and convert the total/remainder of the distribution to a Roth. An RMD from a normal IRA can not be converted. Money converted to a Roth can not be withdrawn for five years without a penalty. There is no RMD for a Roth.
We chose to convert our IRA's to a Roth about eight to ten years ago, converting a portion each year. We paid taxes on the conversion out of other funds so we could convert each entire distribution to the Roth. The Roth/IRA funds are not needed for our monthly/yearly expenses, so they can grow tax free for any future needs. At the time we did the conversions, we had higher than normal charitable contributions which made the tax situation on the IRA conversions more palatable.
__________________
Indiana, Virginia, Vietnam, Tennessee, Indiana, Alabama, S. Korea, Georgia, Washington, Hawaii, Washington, Indiana, Osceola Hills
|