Traditional Ira Minimum Distribution
October 17th, 2009
Question: I’m Over 72 yrs old. Can I Convert IRA Funds to a Roth IRA and Have It Count As Minimum Distribution?
I am required to take a certain amount of money from my traditional IRA since I am over 70 1/2 years old.
Can I “convert” money from my traditional IRA to a Roth IRA and have it count as part of the required minimum distribution?
Answer: Yes, but it is dumb, unless you can return a huge profit from it in a very short time. You pay taxes on in when you take it out of your IRA, and have to leave the contributions in, I think for a minumum of 5 years.
It might be better to put it into a Coverdell ESA for the grandkids or great grandkids.
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