Putting RMD money withdrawn from TIRA into ROTH IRA
After you have taken your RMD from your TIRA and paid the taxes on it, can you then put that money into your ROTH IRA?
After you have taken your RMD from your TIRA and paid the taxes on it, can you then put that money into your ROTH IRA?
Permalink Submitted by Alan Spross on Sat, 2012-01-07 18:06
No.
But after taking out your RMD, you can convert any additional amounts you wish to. Of course, both the conversion and the RMD will be taxable.
You also do not have to pay the taxes immediately. You could take out your RMD in January and convert additional amounts the next day. Your first quarterly estimate is not due until 4/17 and/or you may be paying taxes by withholding from the RMD or other income sources.
The reason you cannot convert the RMD itself is because RMDs are not eligible for rollover. A Roth conversion is a rollover regardless of the taxes which result.