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Posted by Phil Marti on June 21, 2008, 5:00 pm
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"Bill" wrote:
> TP is over 70, taking RMDs -- but has substantial assets in Traditional
> IRA. At the same time, 2007-2008 nosedive in Bank stocks has created
> significant decline in IRA value.
>
> Three questions:
>
> First, is conversion from Trad to Roth still OK when over 70 and taking
> RMD?
Yes. The RMD cannot be converted, but any to all of the remaining balance
can be converted as long as the taxpayer meets the income and filing status
restrictions. Note that neither income from the conversion nor the RMD
counts against the income limit. See Chapter 2 of Publication 590.
> Second, does the "conversion" count as part of RMD?
No
> Third, is it possible to transfer stock directly from Traditional IRA to
> Roth IRA
Yes.
--
Phil Marti
Clarksburg, MD
--
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