dmertz
Level 15

Retirement tax questions

Did you take the RMD required of this traditional IRA from this traditional IRA or from another traditional IRA before converting this traditional IRA to Roth?  If not, your Roth conversion mistakenly converted your RMD for this traditional IRA, which is not permitted.

A Roth conversion is a distribution from the traditional IRA and a taxable rollover to the Roth IRA. However, RMDs are not eligible for rollover.  If you mistakenly converted the RMD to Roth, it represents an excess contribution to the Roth IRA that is subject penalty to the extent that you are unable to treat it as a new, regular contribution to the Roth IRA.  You have until the due date of your tax return to obtain a return of the excess contribution from your Roth IRA.  It must be explicitly made as a "return of contribution," not a regular distribution.