RMDS for IRA and Conversions to Roth after you start taking RMDS.
I will be 72 in May 2023. I understand my RMD set on Dec 31, 2022. Is that recalculated each year? I’ve read conflicting articles. One that RMD is set first year and increased by 2% annually. Another that you can convert IRA’s to ROTH after starting to lake RMD’s. ….if you convert some to ROTH lowering IRA value, RMD’s
….Possibly a topic for Wednesday on WGN?
Thanks
Terry Says
I don’t know where you got that misinformation.
Your RMD for the following year is based on the value of all your IRAS at year end the previous year. Thus your year-end statement(s) for December 2022 are used to calculate your 2023 RMD.
(RMDS for 40lks are calculated and taken separately as demanded by most 40lk custodians).
The amount of the RMD is based on your life expectancy. Google RMD calculator once you know your year-end value — or ask your IRA custodian.
If you have multiple IRAs be sure to include them in the total value, although you can take the money from one or two.
And every year the RMD is re-calcualated based on the previous year’s valuation and your new age. Period
Read this: https://www.terrysavage.com/?post_type=post&s=RMD
If you’re 72 or older, your custodians will require you to take an RMD before doing a Roth conversion.
