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Leon[_7_] Leon[_7_] is offline
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Default OT: House Offer Accepted. What A Crazy Market!

On 5/11/2021 7:45 PM, DerbyDad03 wrote:
On Tuesday, May 11, 2021 at 7:54:31 PM UTC-4, dpb wrote:
On 5/11/2021 5:39 PM, Leon wrote:
...
I learned a few days ago that RMD can be rolled over in to a ROTH IRA
with no RMD from those IRA's

Not exactly "rolled over"; you can convert, but it's not painless by any
stretch for most.

I've converted some, but it ain't a no-brainer it's agonna' be a win in
any short time.

You pay tax on it first at ordinary marginal income rates unless you
have post-tax contributions inside the ordinary IRA.

Plus, RMDs are not eligible to be rolled over and you must take the RMD,
anyway. Thus, whatever you convert will first be ordinary income above
and beyond that of the RMD for the year. And, that extra can be enough
extra to kick in the AMT bite to make the pain even more.

If you can stand that immediate pain, then remember that a distribution
from a Roth is tax- and penalty-free after a five-year aging period.


Sort of...distribution of funds from contributions/conversions is allowed at
any time. It's the *growth* that can't be withdrawn tax/penalty free prior
to 59 1/2 or before 5 years, whichever is longer. There are also exceptions
to that rule. IRS Publication 590-B can be a fun read. ;-)


Medial costs can offset distribution taxes. My dad was in a memory care
canter for about 4 years. I was able to liquidate his IRA's enough to
offset the medical cost and not pay additional taxes.

This may have or might disappear.





If you're of an age that you debate buying green bananas, ...

I shoulda' done starting 30 years ago; now it's pretty painful first
bite to undergo.

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