Quote:
Originally Posted by 74-911
Bill, I wasn't very clear in my OP. I (and my wife) have been making RMDs for several years and understand how they work. One rule is, you cannot take the $$$ from RMD and put them in a Roth IRA.... big no no. However (as you probably know) RMDs are not required this year only.
From everything I read, this year I can convert $$ from my traditional IRA to my Roth IRA as the $$ are not an RMD, I just have to take the usual tax hit. Ideally the full amount of the withdrawal would go the Roth and I would pay the taxes due from other funds.
My question is really how to handle the taxes due if I decided to say convert $30K from my traditional IRA to my Roth IRA. I could have all the taxes withheld during the withdrawal (easiest but least desirable way) or could I have a minimal amount withheld and cover the rest of the taxes due via the final quarterly deposit in January without getting into under withholding issues ??
I was just wondering if anyone else was considering this ???
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As I understand it everyone is exempt from RMD for 2020, it was part of the spring Covid relief bill
As to the IRA to Roth rollover anyone can do it any year, it's just a taxable event and can not be used as part of the RMD
I've been doing a small IRA to Roth rollover for several years now, just try to keep from going up a tax bracket, but you are right that taxes will probably never be lower than right now