May individuals older than 70½ convert their traditional IRA to a Roth IRA?
Individuals older than 70½ may convert to a Roth IRA, provided no portion of the amount converted is a required minimum distribution (RMD) under Internal Revenue Code Section 401(a)(9). 3 The RMDs would be paid before the conversion occurs. (Minimum distributions must be taken from traditional IRAs by April 1 following the year that a person turns 70½. A minimum distribution must be taken from the IRA in each subsequent year. Failure to take the required minimum distribution will result in a 50% penalty on the amount that was not distributed. Mandatory distributions that represent deductible contributions and all earnings are taxed as ordinary income.
