ira rmd distribution (and maybe an additional amount) and deposit options
IRA rmd is taken and included as taxable income. Now where can you put the proceeds? 1. just put it into another taxable account? I see no problem with that option. 2. can you deposit the total amount (or part) into your roth ira? Allowed? 3. If you take an additional amount out (in the same year) can you deposit that amount into the roth? Many thanks for you help (only 2 weeks left in this year). John
Permalink Submitted by Edward Czapor on Thu, 2012-12-13 15:57
You can put your RMD into any type of taxable account. Distributions of your RMD can only be contributed to a Roth if you have earned income, and subject to contribution limitations. If you do not have earned income, the only way to contribute to a Roth is by converting amounts above your RMD from your TIRA. This would result in an additional taxable distribution for the amount converted.