Ask the Experts!

The professionals at Advanced Underwriting Consultants (AUC) answer the tax and technical questions posed by producers.  Here’s the question of the day.

Question: One of my clients is turning 70 ½ this year, and must begin to take required minimum distributions (RMDs) from his IRA.  Are those distributions eligible for conversion to a Roth IRA?

Answer: No.  Only IRA distributions that are eligible for rollover are eligible for conversion to a Roth IRA.  RMDs are not eligible for rollover.

A taxpayer who has reached age 70 ½ may convert traditional IRA balances that are not part of an RMD to a Roth IRA.

Have a question for the professionals at AUC?  Feel welcome to submit it by email.  We may post your question and the answer as the question of the day.