Thanks. All true, provided you haven't already maxed out ROTH contributions in the tax year of the RMD. Of course, that would not matter if you are doing a Roth conversion at an age before RMDs are due. It also should not matter after. There is no statute that authorizes the IRS to prevent traditional IRA RMD funds, on which taxes are fully paid, from being converted to a Roth. Congress created Roths. Roths are not only lawful, they are encouraged. Unfortunately, the IRS probably will never be challenged in Tax Court because the amounts involved are so small and the costs to challenge are so great. That does not mean the IRS position is lawful. It does things every day that are contrary to law. Not necessarily intentionally. It's just an institutional bias. But many thanks nonetheless.
