When taking a RMD from a spouse inherited profit sharing plan can I start a Roth IRA with that money
Each year I am required to take a RMD from my late husbands profit sharing plan is there any chance I can then put that money in a Roth IRA I’m retired also but do have a Roth IRA.
Permalink Submitted by Alan - IRA critic on Tue, 2021-11-09 15:15
An RMD is never eligible for rollover and a conversion is a rollover. You could convert additional distributions to your Roth IRA after the RMD was completed, but not the RMD itself, and in that case you would be taxed on both the RMD income and the conversion. Also, note that your RMD would be much lower and you would fewer accounts to deal with if you rolled over the inherited PS plan to your IRA since you could then use the Uniform Table. These lower RMDs would start in the year after the rollover. If you are under 59.5, distributions from your IRA are subject to penalty, but distributions from the inherited plan are not. So this is only an issue if you are under 59.5. I could narrow down your options if you provided both of your dates of birth and his DOD.