IRA Question
A client was told by Fidelity Investments that they can take their RMD and put $6,500 into Roth for wife and husband EVEN THOUGH they do not have earned income. True or False Why????? Thank you! Sent from Ralph Adorno —– ralphadorno@ optonline.net
Permalink Submitted by Alan - IRA critic on Mon, 2017-02-27 16:13
While Roth contributions can be made beyond 70.5, there must be earned income from one of the spouse’s to make those contributions. If one spouse works, a spousal contribution can be made to the non working spouse’s account. But at least one of them must have earned income. A Roth conversion can be done without earned income, but the RMD must be completed first, then any additional amounts can be converted. So perhaps client misunderstood.