Coverting IRA distribution to Roth Options

[chick]

Can I simply convert an IRA distribution to my Roth? I retired this year at age 75. Also may want to convert part of the distribution next year.

[Appleby]

If the distribution is rollover-eligible, you have 60-days to deposit it to your Roth IRA. The deposit should be treated as a Roth conversion by you and the IRA Custodian.

There are no RMDs for this year, which means that if your distribution represents (what would have been) your RMD, it can be converted to your Roth IRA.

Please post any follow-up questions.

[chick]

If the distribution is rollover-eligible, you have 60-days to deposit it to your Roth IRA. The deposit should be treated as a Roth conversion by you and the IRA Custodian.

There are no RMDs for this year, which means that if your distribution represents (what would have been) your RMD, it can be converted to your Roth IRA.

Please post any follow-up questions.

From the wall street journal today. This seems to apply to my question. But this is contrary to what you say, is it not?
Thank you.

One other note: If you are age 70½ or older and taking required minimum distributions from a traditional IRA or workplace plan, you can’t convert that required withdrawal to a Roth. However, after you take your required minimum distribution for the year, you can convert remaining traditional IRA assets to a Roth.

[J Simmons]

If the distribution is rollover-eligible, you have 60-days to deposit it to your Roth IRA. The deposit should be treated as a Roth conversion by you and the IRA Custodian.

There are no RMDs for this year, which means that if your distribution represents (what would have been) your RMD, it can be converted to your Roth IRA.

Please post any follow-up questions.

From the wall street journal today. This seems to apply to my question. But this is contrary to what you say, is it not?
Thank you.

One other note: If you are age 70½ or older and taking required minimum distributions from a traditional IRA or workplace plan, you can't convert that required withdrawal to a Roth. However, after you take your required minimum distribution for the year, you can convert remaining traditional IRA assets to a Roth.

The note quoted from the Wall Street Journal does not contradict Appleby's answer.

This post has been edited by J Simmons: Jun 20 2009, 11:35 PM

[masteff]

The key is Appleby's 2nd paragraph... "There are no MRDs for this year." Thanks to Congress, there is a temporary waiver of MRDs for 2009. Even if your plan sends you money which it says is an MRD, it's not really an MRD for purposes of your personal taxes.

See IRS Publication 575, page 26, "Temporary waiver of required minimum distributions for 2009".