Will conversion to Roth satisfy age 70 1/2 RMD for that year?

[Guest Steve Hample]

Suppose a client is over 71 and has a couple IRAs and needs to take a distribution (and does annual recalculation so is not locked into a regular distribution). The client now intends to convert the smaller IRA to a Roth and pay income tax yet in this year on the conversion amount. Does such action count toward satisfying the age 70 1/2 required distribution?

Conflicting thoughts: No, because it is a conversion rather than a distribution. Yes, because money comes out and the IRS collects income tax so they should be happy.

I looked quickly, but did not find any written guidance to settle the debate.

Steve Hample

[BPickerCPA]

The answer is NO. You cannot convert a required distribution. It's clearly stated in the law.

You would have to take the required distribution, and then convert the balance, if eligible.