Roth-IRA conversions
Can an individual who is over 73 years old and taking RMDs, continue to transfer money from an IRA to a Roth IRA?
Terry Says
Yes. But why?? Why pay the taxes now? You MUST take RMDs — and those will be taxed. If you take out more, you could increase your Medicare Part B and D premiums! My suggestion is to just leave the money where it is and take the RMDs, remembering to have taxes withheld.
The only reason to do a Roth conversion is if you feel taxes will rise sharply in the future — AND, if you have money OUTSIDE the IRA to pay the taxes on the conversion –AND if it doesn’t push you into a higher tax and Medicare bracket. That’s rarely the case, and not necessary at this stage of your life.
