@dmertz , thanks.
@Jack-A-Lope
So this is what you would do if you want to be in exact compliance.
"I made a Roth conversion in March of $60,000. I need to make a $50,000 RMD for 2022. There is plenty left in the IRA. So if I understand what you are saying, here is the best / easiest way to handle this:"
Step 1. Contact the Roth trustee and tell them that $50,000 of the conversion was an "excess contribution" and you need to withdraw it. The plan knows what to do for excess contributions and they will return the money with any gains or losses, and you will report the gains as taxable income.
Optional step 1a. If you have compensation from working this year, you can contribute up to $7000 (since you are over age 72) to the Roth IRA as a regular contribution. If you have not made your contribution yet, you could tell the custodian, "$50,000 is excess, but treat $7000 as my contribution and return $43,000 to me." Or you could take the whole $50,000 as a return of excess and then send your contribution separately (if you are eligible).
Optional step 2. After you have satisfied the "first-out" rule (by taking a return of excess contribution, so that $50,000 from the March withdrawal is used to satisfy your RMD), you would then be eligible to make a new Roth conversion from the IRA in any amount, as long as you get both transactions processed by 12/31. If you converted another $50,000, you would end up more or less where you would be anyway, except the date of the Roth Conversion would be December instead of March.
