RMD to RIRA Contribution
Can RMD money received be contributed back to a RIRA up to the contribution limits? I’ve been told that RIRA contributions must be with W2 money.
Any thoughts would be appreciated.
K
Can RMD money received be contributed back to a RIRA up to the contribution limits? I’ve been told that RIRA contributions must be with W2 money.
Any thoughts would be appreciated.
K
Permalink Submitted by mk foss on Thu, 2012-12-13 18:34
You need to have earned income to make a Roth contribution. If you take an IRA RMD and pay tax on it, you can use the funds for your Roth IRA contribution if you have earned income. RMDs and other retirement payments are not considered earned income. You’d need a W-2 or some business income to justify the contribution.