With all the confusion going on about RMDs and the pandemic, I made a Roth conversion in March from a traditional IRA. I had not taken my RMD yet, and I am planning to take it in a few days before the end of the year (2022). I just learned that you can't do a Roth conversion before taking the RMD and this can result in a 50% Tax? However, I believe I can apply for a waiver, but I have to pay the taxes first.
My first instinct is take the RMD out, as planned, before the end of the year and then figure out the taxes and apply for a waiver next year when I file 2022 taxes. I will make the RMD in good faith before the end of the year to correct the timing issue. Also the value of the conversion has declined since march, and I will be paying taxes on the higher amount.
Is there a better way to handle this since I have a couple of weeks before the year end?
Much Thanks!
