Spousal Roth contribution and Roth conversion satisfy RMD

Submitted by Mike LaRose on Thu, 2017-08-24 18:17

Hello,

I have 2 questions that I am not 100% certain on:

1. It is my understanding that you cant do a Roth conversion to satisfy your RMD, is that correct?
2. A client (retired) is 70 1/2 but his spouse still works, their income will be with in the contribution limits. Can they make a Spousal Roth contribution?

Thanks,

Mike

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Permalink Submitted by Alan - IRA critic on Fri, 2017-08-25 01:01

That is correct. You can do a conversion after the RMD is completed which comes from an additional distribution. You are then taxed on both the RMD and the amount converted.
If the working spouse is not yet 70.5, they can make a TIRA contribution or Roth contribution if their joint modified AGI is not too high for a Roth contribution. A spousal contribution for the retired spouse can also be made, but that is limited to a Roth contribution only due to his age and also only possible if joint MAGI is not too high.