RMD rollover to Roth?
I have someone who is over 70.5, with no earned income. He’s inquired as to whether he can take the amount of his RMD and roll it to over to a Roth. Has anyone run into this question/situation? Is it permissible?
TIA,
Gregg
Hi, Tom.
Yes, you are correct. The RMD should be taken first, and then any additional amounts a taxpayer wishes to convert (if eligible) can be rolled over to a Roth IRA.
No part of the actual RMD can be rolled over to a Roth or any other IRA account. With respect to the 100,000 modified AGI limit that applies through 2009, neither the RMD itself or the amount of a conversion counts against that limit.
Permalink Submitted by Gregg Lynch on Tue, 2007-08-07 18:22
Tom,
I believe the answer is going to be the same, but the question is hard to word in the way I intend. We know he can’t make a contribution to the Roth with no earned income; we’re curious as to if he can do a rollover to the Roth.
In other words, can a rollover from the IRA to the Roth (of the appropriate amount) be treated as his Required Minimum Distribution?