Roth IRA conversion & Minimum Required Distributions

[Fredman]

Do amounts coverted from regular IRAs to Roth apply towards satisfying MRDs?

Example: $300,000 IRA account balance, $50,000 converted to Roth IRA in 1998, MRD for 1998 is $30,000.

Is the 1998 MRD for the regular IRA satisfied? Thanks.

[This message has been edited by Fredman (edited 12-01-98).]

[Wessex]

No. Required minimum distributions should be made before a rollover. Unless a required minimum distribution of $30,000 is made from the regular IRA, the first $30,000 of the rollover will be treated as a required minimum distribution and thus not eligible for rollover. If not timely corrected, the $30,000 will also be subject to the 6% excise tax on excess contributions.