facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
The 10-Year Rule and Roth Conversions: Today's Slott Report Mailbag Thumbnail

The 10-Year Rule and Roth Conversions: Today's Slott Report Mailbag

This article includes a few questions directed at Ed Slott's team involving the 10-year rule and Roth conversions. Read on to see how his team answered.

Ed Slott's team answers the following questions if you have questions of your own relating to this topic.



Ed, I started reading your newsletter and I wondered what you thought of IRS Notice 2022-53. It made sense to me to the point where it said that "the beneficiary of an employee who died after the employee's required beginning date must take the RMD beginning in the first calendar year after the calendar year of the employee's death."

But then in the end they lost me when it says it applies only if the employee died in 2020 or 2021. Seems like it should say 2022 as well.

This is of concern to me because I don't want to take the RMD this year, and my dad died this year leaving me his IRA in respect of which he had started taking RMDs.




Hi Brett,

The IRS issued Notice 2022-53 in response to confusion created by the proposed regulations that require annual required minimum distributions (RMDs) during the 10-year payout period under the SECURE Act. This rule took many by surprise, so the IRS waived the rule for those who inherited in 2020 or 2021.

Your situation is a little different. Your dad passed away this year, so a different rule applies to you in 2022. That is the rule that says that if the IRA owner died before taking his entire RMD for the year of death, then the beneficiary must take it. Unfortunately, the IRS guidance does not help with this rule. The 10-year rule will not start for you until next year (the year after your father’s death). At that point hopefully the IRS will have clarified whether RMDs are required during the 10-year period.



I found you via Google search!

I converted an IRA investment worth over $200k to a Roth IRA investment in December 2021 and paid taxes on the same. As you know, markets have been brutal and investments are worth far less.

I learned only this week that the conversion could be reversed via recharacterization by a deadline (which I believe was October 15) or I could apply for a private letter ruling from the IRS. Since October 15 was not so long ago, is there a way to reverse the Roth investment back into the IRA and save on taxes?

Thank you.


Unfortunately, a missed deadline is not the problem here. As part of the Tax Cuts and Jobs Act of 2017, Congress ended recharacterization for conversions in 2018 and later. This remedy is no longer available for unwanted conversions.

By Sarah Brenner, JD
Director of Retirement Education
Ed Slott and Company, LLC

Copyright © 2023, Ed Slott and Company, LLC Reprinted from The Slott Report, 12/22/22, with permission. https://www.irahelp.com/slottreport/10-year-rule-and-roth-conversions-todays-slott-report-mailbag-1, Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article. Chris Cordoba, founder of California Retirement Advisors, is a member of Ed Slott's Master Elite IRA Advisor Group.
Investment advisory services offered through Mutual Advisors, LLC DBA California Retirement Advisors, a SEC registered investment adviser. Securities offered through Mutual Securities, Inc., member FINRA/SIPC. Mutual Securities, Inc. and Mutual Advisors, LLC are affiliated companies. CA Insurance license #0B09076. This content is developed from sources believed to be providing accurate information and provided by California Retirement Advisors. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. California Retirement Advisors, nor any of its members, are tax accountants or legal attorneys and do not provide tax or legal advice. For tax or legal advice, you should consult your tax or legal professional.