IRA in payout mode
If I put my IRA in payout mode before being 70.5 years (but above 59.5) to qualify for a nursing home — would I be able to to put this “pay out mode” disbursements into ROTH IRA. I know that you cannot do this for RMD IRA distributions after 70.5. But could not find anything on the topic when you make voluntary pay out mode distributions before 70.5
Permalink Submitted by Alan - IRA critic on Sun, 2019-03-03 15:37
You can convert to a Roth anytime, but once RMDs begin you must complete your RMD before converting any additional amounts. But if you are trying to qualify for Medicaid, converting your TIRA to a Roth IRA will not qualify you since your IRA money has only shifted from a TIRA to a Roth IRA. You would have to drain the Roth IRA as well.