RMD and Roth Conversion

[BruceM]

A 73 year old has their first RMD this year of $8,000. After reading an article on Roth conversions, the IRA owner elects a $30,000 Roth conversion before withdrawing their RMD. It seems the IRA custodian allows this as the IRA owner's intent was to do a rollover, taking possession of the $30,000 withdrawal and within 60 days, deposit it in a Roth IRA (his first) as a Roth conversion. But the $8,000 will be considered the RMD withdrawal, not a Roth conversion while the remaining $22,000 will be considered a Roth conversion. So under these circumstances, assuming this 73 year old or his spouse has no earned income, that an $8,000 excess contribution has been made to his Roth IRA? If so, the IRA owner has until Oct 31, 2026 to withdraw the excess Roth contribution and its associated earnings. 

Is this correct?

[Bruce1]

I'm scratching my head why someone would want to do an in-direct rollover for a Roth conversion.. You can't do a rollover of an RMD nor can you do a Roth conversion of an RMD. It would seem like you have a $22,000 taxable Roth conversion and an $8,000 taxable IRA withdrawal. Without looking up how to fix this, it would seem like you would have to take out the $8,000 with earnings and possibly penalties. Not sure where you are getting the Oct 31, 2026 date. 

[Appleby]

On 12/23/2025 at 2:26 PM, BruceM said:

A 73 year old has their first RMD this year of $8,000. After reading an article on Roth conversions, the IRA owner elects a $30,000 Roth conversion before withdrawing their RMD. It seems the IRA custodian allows this as the IRA owner's intent was to do a rollover, taking possession of the $30,000 withdrawal and within 60 days, deposit it in a Roth IRA (his first) as a Roth conversion. But the $8,000 will be considered the RMD withdrawal, not a Roth conversion while the remaining $22,000 will be considered a Roth conversion. So under these circumstances, assuming this 73 year old or his spouse has no earned income, that an $8,000 excess contribution has been made to his Roth IRA? If so, the IRA owner has until Oct 31, 2026 to withdraw the excess Roth contribution and its associated earnings. 

Is this correct?

You are right,except:

1. Not only would they need eligible compensation, but the MAGI caps apply.
2. It's October 15, not 31. Technically, April 15 (tax filing due date) with an automatic 6 month extension if they file by tax filing due date.
3. Technically, NIA, which can be earnings or losses
4. If the deadline is missed, a 6% excise tax would be owed on the excess