I read the FAQ - they specifically call out the clawback for RMDs ("Note, that the early IRA match removal fee may apply to required minimum distributions as well.").

For Roth conversions the FAQ says:
"What happens if I earn an IRA match in my traditional IRA but then want to convert it to my Roth IRA?
The IRA match generally would be taxable during a conversion because it’s counted as interest income for tax reporting purposes. Everyone has a different tax situation and should consult a tax advisor."

After reading all of the clawback FAQs, one interpretation can be that as long as your total retirement account balance does not go below the amount you transferred to get the match, it will not be clawed back. Total being the part that is in question.

As far as not doing Roth conversions for 5 years... I understand the benefit of doing conversions but I'm finding it difficult to quantify the actual dollar amount of the benefit to determine if it is a big deal or not. Using some of the simple Roth Conversion online calculators, the tax benefit of converting seems to be greater than the 3% bonus. And that does not include IRMAA.

I guess I can convert just the bonus plus any gains(being optimistic) in the account.

Retirement Investing FAQ

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