I am over 70½ and need to take a Required Minimum Distribution (RMD) from my IRA. Can I convert my assets to a Roth IRA before the RMD deadline to avoid taking this years distribution?
Although one of the perks of a Roth IRA is that it doesn’t require you to take RMDs from your account after you turn age 70½, if you convert after age 70½, you’re still required to take one final distribution for the year you convert. However, as a separate, one-time rule, the IRS suspended RMDs for 2009. Therefore, if your MAGI is below the current limit, you can to convert to a Roth IRA in 2009 and avoid taking this year’s distribution. (Keep in mind that RMD rules are scheduled to resume in 2010.
Although one of the perks of a Roth IRA is that it doesn’t require you to take RMDs from your account after you turn age 70½, if you convert after age 70½, you’re still required to take one final distribution for the year you convert. However, as a separate, one-time rule, the IRS suspended RMDs for 2009. Therefore, if your MAGI is below the current limit, you can to convert to a Roth IRA in 2009 and avoid taking this year’s distribution.
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