Conversion to Roth in Year Turning 70 1/2

[Guest Wade Jackson]

My mother is 69, but she will be 70 in June 2002 and 70 1/2 in December 2002. She has a traditional IRA and would like to convert it to a Roth. She will file MFJ with my father, and their modified AGI will be less than the $100K max.

Can she convert this year even though she is due to begin receiving RMD's in 2002?

If she can convert, will she be required to take minimum distributions from the Roth in future years?

Thanks!

[BPickerCPA]

She will have to take the 2002 minimum distribution before doing a conversion. IF income is still under $100k, then you can do a conversion. You will not have to deal with minimum distributions from the Roth.

[Appleby]

The 2002 RMD is added to their modified AGI for purposes of determining eligibility to convert to a Roth IRA.

This is no longer so, effective for tax years beginning 2005