@ajmoody wrote:
So, even with the Cares Act, the fact that the RMD was placed in a Roth IRA rather than back in the SEP-IRA disqualifies any tax reduction. It just allows for a higher annual contribution to a Roth IRA.
The CARES act did not suspend ANY ordinary tax that would not be present absent the CARES act, it only suspended the 60 day rollover time limit to even allow the rollover in the first place. It is only tax free if rolled back to the account that the money came from which was the intent of the law - to avoid the tax as if the distribution has never happened. You did not do that - you did something else with the money and created a taxable conversion.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
