RMD Question

Submitted by Kevin O'Hearn on Mon, 2020-03-23 13:22

Hello, I have a client 73 (DOB 03/04/1947) and they have a traditional IRA that has an RDM and they want to take the RMD and move it to a profit sharing plan that they have. I’m pretty sure this cannot be done and they would need to move the RMD to a non-retirement account or have a check cut but I just wanted a second opinion.

Thank you.



Submitted by David Mertz on Mon, 2020-03-23 14:31

  • You are correct that an RMD is not eligible to be rolled over to any qualified retirement plan.  It must go to a non-retirement account (or cashed) and must be reported as income on the client’s tax return.
  • If the RMD is paid as a QCD to a charitable organization (up to $100,000 per year), it will not be taxable, but it will still appear as nontaxable income on the client’s tax return.

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