The amount would be deposited to the Roth IRA- in cash, as a regular contribution. In short, the cash for making the IRA contribution can come from any legitimate source.
Permalink Submitted by Alan Spross on Wed, 2007-11-28 00:16
The person could also make a Roth conversion, but in that case, the amount that can be converted would have to be in excess of the RMD amount. In other words, you would take your RMD, and then process a conversion with an additional amount. The 100,000 MAGI limit applies through 2009, but you do not have to have any earned income to do this.
Note that your RMD itself is not eligible for rollover, and a Roth conversion IS a rollover. Your tax bill would include both the RMD and the conversion. The RMD does not count against the 100,000 MAGI limit.
Permalink Submitted by Scott H on Tue, 2007-11-27 22:23
Yes, as long as they are working, and have earned income at least equal to the amount of the contribution.
Permalink Submitted by Denise Appleby on Wed, 2007-11-28 00:08
…and the MAGI should not exceed certain amounts.
See http://retirementdictionary.com/Roth-IRA.htm
The amount would be deposited to the Roth IRA- in cash, as a regular contribution. In short, the cash for making the IRA contribution can come from any legitimate source.
Permalink Submitted by Alan Spross on Wed, 2007-11-28 00:16
The person could also make a Roth conversion, but in that case, the amount that can be converted would have to be in excess of the RMD amount. In other words, you would take your RMD, and then process a conversion with an additional amount. The 100,000 MAGI limit applies through 2009, but you do not have to have any earned income to do this.
Note that your RMD itself is not eligible for rollover, and a Roth conversion IS a rollover. Your tax bill would include both the RMD and the conversion. The RMD does not count against the 100,000 MAGI limit.