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.
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