Quote:
Originally Posted by Boomer
This is really good advice, not just for tax savings to heirs, but down-the-road tax savings for yourself should you decide you want or need to tap into that Roth.
I did a few conversions, years ago, but — I did not do it as much as I should have.
A question for retiredguy123:
Am I correct that when doing a conversion to Roth after reaching RMD age, the conversion must be done AFTER the RMD is met?
(I think November is a good time to project income to see what can be done to save taxes and to dodge IRMAA, if getting close — perhaps by using QCDs if charitably inclined. The recent market will lower the RMD for those who are seeing their holdings take a hit, so maybe it might be worth looking at adding on a conversion to Roth.)
I was still relatively young when I was doing conversions to Roth and my accountant asked me why I wanted to pay my kid’s taxes. But that was not what I was thinking about. I was thinking about our own future use of IRA money that had already had the taxes paid.
Boomer
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It is correct that you cannot convert the RMD part of your IRA distribution to a Roth.
Note that, for people who turned 72 this year, 2022, you must take your first RMD by April 1, 2023. But, there is still a good chance that Congress will pass the Secure Act 2.0 by the end of 2022. That law will most likely change the age to start the RMDs from 72 to 73. So, I would wait at least until the end of December to take your RMD to see if the law changes. But, if you wait until 2023 to take the first RMD, you will need to take two RMDs in 2023.