RMD from Roth 457(b)
Does anyone know if this is permissible? A RMD from a designated Roth account rolled to a Roth IRA? I am aware that a person is permitted to roll a designated Roth account to a Roth IRA in order to avoid RMDs, but I thought I read somewhere that an RMD from a designated Roth account could also be rolled to a Roth IRA.
Permalink Submitted by David Mertz on Mon, 2016-10-03 18:25
RMDs are never eligible for rollover.
Permalink Submitted by Peter Thomann on Tue, 2016-10-04 15:07
OK thanks DMX.
Permalink Submitted by Alan - IRA critic on Tue, 2016-10-04 20:44
The one exception to this rule is when an RMD is a plan RMD and not a statutory RMD. This occurs when all employees that are not 5% owners are required to take RMDs at 70.5 while still working. Those are not statutory RMDs, but rather plan RMDs and they are eligible for rollover.
Permalink Submitted by David Mertz on Tue, 2016-10-04 21:39
Thanls, Alan, I forgot about that distinction. Perhaps that what was being remembered. My answer assumes that the RMD is a statutory RMD.