You may have noticed from B.M.’s letter that he and his wife rolled over their RMD withdrawals from traditional IRAs into Roth IRAs. IRS News Release 2020-187, issued Aug. 24, 2020, stated: “Since the RMD rule is suspended, RMDs taken in 2020 are considered eligible for rollover.” That opened the door to conversions from traditional IRAs to Roth IRAs, but just for 2020. File Form 8606 when you convert a traditional IRA to a Roth IRA. Part I: No Nondeductible Contributions; No BasisTaxpayers who made no nondeductible contributions can skip Part I of Form 8606. Part III: Distributions From Roth IRAsThere is a third section to Form 8606 for distributions from Roth IRAs.

Source: Forbes May 07, 2021 17:37 UTC