2020 ROTH
Last year I transferred a small portion of my IRA to a new account. Is there anything in the new 2020 IRA rules that would make it a mistake to do the small RMD and then complete all of my 2020 ROTH Conversion from this new account? The RMD for the larger account will be completed much later in 2020. Thanks for any helpful input.
Permalink Submitted by Alan - IRA critic on Fri, 2020-01-03 21:00
Yes, you can do this because you must only complete the RMD for the IRA account you are converting from before you do the conversion. Per IRS Reg 1.408-8 QA 4 indicating that only the RMD “for that account” must be completed before doing a rollover from that account. A conversion is a distribution plus rollover. This strategy allow you to convert early in the year and do the bulk of your RMD from other accounts later in the year.