Is it legal to take the RMD from an IRA and roll it over to a Roth IRA and still satisfy the RMD? Since taxes are paid on the distribution, it seems like this should be allowed.
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The answer is
no. See page 13-14 in TTB. -
TTB 13-14 correctly states that a RMD does not qualify as a Conversion Contribution. It doesn't say funds received as a RMD cannot be used as a regular ROTH contribution.Comment
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Age Limit
Is there no age limit at which a taxpayer is stopped from making Roth contributions?
If so, the conversion of an RMD may not qualify anyway.
If no age limit, there would still be nothing wrong with the taxpayer taking the RMD and then making a contribution in a two-step process.Comment
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Unlike the Traditional IRA, a t/p can make a contribution to a Roth IRA at any age. But, there MUST be EARNED income to make a contribution. Just as with the traditional IRA. Many retired folks no longer have earned income and therefore cannot contribute to IRA'sYou have the right to remain silent. Anything you say will be misquoted, then used against you.Comment
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