RMD and ROTH
Can a client take their RMD from their Traditional IRA and deposit into their ROTH IRA? The client has earned income and the RMD is around $28,000.00. She would do a conversion of the RMD to the ROTH.
Can a client take their RMD from their Traditional IRA and deposit into their ROTH IRA? The client has earned income and the RMD is around $28,000.00. She would do a conversion of the RMD to the ROTH.
Permalink Submitted by Alan - IRA critic on Wed, 2021-01-06 18:11
An RMD can never be rolled over, and a conversion is a rollover. Therefore, if the client wants to do conversions they can only be done with additional amounts from the TIRA after the RMD has been completed. That said, if the client has earned income and their MAGI is not too high for a regular Roth contribution, they can use the RMD to subsidize a regular Roth IRA contribution, for which the max with catch up is 7000. This is not a rollover or conversion.
Permalink Submitted by Dave Johnson on Fri, 2021-01-08 15:26
Thank you!!