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Can Rollover from pension to Roth IRA count toward RMD?


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Client has pension in TIAA, rolling $50,000 to Roth IRA and paying tax on that.

He is also required to take an RMD, which is about $15,000.

Can the $50,000 coming out of TIAA and going into the Roth cover his RMD requirement?  

It seems like that would be a 'no' but I am not an expert on this.

Thanks.

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On 11/22/2022 at 3:51 PM, M Norton said:

Client has pension in TIAA, rolling $50,000 to Roth IRA and paying tax on that.

He is also required to take an RMD, which is about $15,000.

Can the $50,000 coming out of TIAA and going into the Roth cover his RMD requirement?  

It seems like that would be a 'no' but I am not an expert on this.

Thanks.

It will cover his RMD- sure, because that would be his first distribution and therefore would go towards his RMD.  But, he would then have an ineligible rollover of $15,000 to the Roth.  Only $35,000 of that $50,000 is eligible to be rolled over.

Life and Death Planning for Retirement Benefits by Natalie B. Choate
https://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/

www.DeniseAppleby.com

 

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