If you’ve reached the age where Required Minimum Distributions (RMDs) apply, you might be wondering if you can still move funds from a traditional IRA to a Roth IRA. The answer is yes — but not without following some strict rules. Understanding the RMD rules for Roth IRA conversions can save you from costly mistakes and missed opportunities.
The Core Rule: Take the RMD First
Before you can convert any portion of your traditional IRA to a Roth IRA in a given year, you must first take your annual RMD for that year. This applies whether you’re converting your entire IRA balance or just part of it.
Why? The IRS doesn’t allow RMD amounts themselves to be converted to a Roth IRA. You must withdraw that portion first, report it as income, and only then can you convert any remaining balance.
Special Case: Turning 73 This Year
A reader recently asked about this scenario:
- The IRA owner turns 73 this year (2025).
- They choose to delay their first RMD until April 1 of the following year (2026), which is allowed under IRS rules.
Here’s the catch: in this case, the IRA owner cannot do a Roth conversion in 2025. Why? Because their first RMD is still outstanding and must be taken before any conversion can occur.
The Two Paths Forward
If you’re in this situation, you have two options:
- Wait Until 2026
- Take your delayed first RMD for 2025 early in 2026.
- Also take your 2026 RMD before doing the conversion.
- Then convert any remaining IRA funds to a Roth IRA.
- Take the RMD Now
- Take your first RMD in 2025.
- Convert any remaining funds to a Roth IRA in the same year.
Planning Ahead for Tax Impact
The RMD rules for Roth IRA conversions can have big tax implications:
- RMD withdrawals are taxable income — meaning they may bump you into a higher bracket before you even convert funds.
- Conversions are also taxable — so doing both in the same year could result in a higher overall tax bill.
- Timing matters — spreading RMDs and conversions across multiple years may help you control your taxable income.
Why This Matters for Retirement Planning
Many retirees consider Roth conversions to reduce future tax liability and avoid leaving heirs a large tax bill. But at RMD age, the sequence and timing of withdrawals is critical. Ignoring the RMD rules for Roth IRA conversions can delay your strategy by a full year or more.
If you’re close to RMD age or already there, talk to a tax advisor before making any moves. The right timing could save you thousands in taxes over the long term.
FAQs: RMD Rules for Roth IRA Conversions
1. Can I convert my RMD to a Roth IRA?
No. RMD amounts cannot be converted. You must take your RMD first, and only then can you convert additional funds.
2. What if I delay my first RMD until April 1 of the following year?
If you delay your first RMD, you cannot convert to a Roth IRA in the initial year because your RMD obligation is still unmet.
3. Can I take my RMD and convert in the same year?
Yes. As long as you take your full RMD first, you can convert remaining IRA funds to a Roth IRA in the same calendar year.
4. Do RMD withdrawals and conversions increase my taxable income?
Yes. Both count as taxable income, which could push you into a higher tax bracket if done in the same year.
5. Do the rules apply to all retirement accounts?
The RMD rule applies to traditional IRAs, SEP IRAs, and SIMPLE IRAs. Roth IRAs do not have RMDs for the original owner.
