When the RMDs are suspended can I do a Roth conversion without first doing an RMD?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
GeoMetry
Posts: 76
Joined: Mon Jan 31, 2011 8:26 pm

When the RMDs are suspended can I do a Roth conversion without first doing an RMD?

Post by GeoMetry » Thu Mar 26, 2020 9:20 am

Under the Worker, Retiree, and Employer Recovery Act of 2008 Retirement account holders were allowed to skip their RMD for 2009. Was a retirement account holder allowed to do a Roth conversion without first doing an RMD?

User avatar
Flobes
Posts: 1206
Joined: Tue Feb 16, 2010 12:40 am

Re: When the RMDs are suspended can I do a Roth conversion without first doing an RMD?

Post by Flobes » Thu Mar 26, 2020 9:41 am

Suspension of RMDs is but a rumor flying in the noisy winds.

2008 rules have nothing to do with might or might not be relevant in the near or far future, so they are useless for current planning.

For example, 2020 programs for unemployment and stimulus are very different from 2008.

User avatar
prudent
Moderator
Posts: 7317
Joined: Fri May 20, 2011 2:50 pm

Re: When the RMDs are suspended can I do a Roth conversion without first doing an RMD?

Post by prudent » Thu Mar 26, 2020 10:17 am

Discussion of proposed legislation is not allowed by forum policy. Nobody knows what the law will say until it is signed.

User avatar
LadyGeek
Site Admin
Posts: 61128
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: When the RMDs are suspended can I do a Roth conversion without first doing an RMD?

Post by LadyGeek » Fri Mar 27, 2020 4:14 pm

The stiumuls bill has been signed into law. This thread is reopened to continue the discussion.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

Alan S.
Posts: 9361
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: When the RMDs are suspended can I do a Roth conversion without first doing an RMD?

Post by Alan S. » Fri Mar 27, 2020 4:26 pm

GeoMetry wrote:
Thu Mar 26, 2020 9:20 am
Under the Worker, Retiree, and Employer Recovery Act of 2008 Retirement account holders were allowed to skip their RMD for 2009. Was a retirement account holder allowed to do a Roth conversion without first doing an RMD?
Yes, the Roth conversion could have been done subject to the income limits in 2009. Similarly, with the 2020 RMD waiver a Roth conversion can be done just as if you were back in the pre RMD years, and no income limit now.

But note that if your income in 2018/2019 reduces your rebate, you can still get the rebate in 2021 (for 2020 return) as a refundable tax credit. Keep that in mind in determining how much to convert.

Post Reply