Inherited IRA
Can a 36 year old take a RMD from an inherited IRA and contribute to a a Traditional or Roth IRA during the same year. I know thqt you can not contribute to a Roth IRA if you are receiving RMDs from a Traditional IRA.
Can a 36 year old take a RMD from an inherited IRA and contribute to a a Traditional or Roth IRA during the same year. I know thqt you can not contribute to a Roth IRA if you are receiving RMDs from a Traditional IRA.
Permalink Submitted by Clyde Wolf on Tue, 2008-09-23 17:50
Allantbu,
To make a contribution to any IRA you must have earned compensation.
The RMD from an inheirted IRA does not count as earned compensation.
If the 36 year old has employment, they can contribute to an IRA, the lesser of their earned income or $5,000.
If you are receiving RMDs from a Traditional IRA, You Can Contribute To A ROTH IRA if you otherwise qualify with earned compensation and are within the income limits for the ROTH IRA.