RMD rollover to Roth?

I have someone who is over 70.5, with no earned income. He’s inquired as to whether he can take the amount of his RMD and roll it to over to a Roth. Has anyone run into this question/situation? Is it permissible?

TIA,
Gregg



Tom,
I believe the answer is going to be the same, but the question is hard to word in the way I intend. We know he can’t make a contribution to the Roth with no earned income; we’re curious as to if he can do a rollover to the Roth.

In other words, can a rollover from the IRA to the Roth (of the appropriate amount) be treated as his Required Minimum Distribution?



Hi, Tom.
Yes, you are correct. The RMD should be taken first, and then any additional amounts a taxpayer wishes to convert (if eligible) can be rolled over to a Roth IRA.

No part of the actual RMD can be rolled over to a Roth or any other IRA account. With respect to the 100,000 modified AGI limit that applies through 2009, neither the RMD itself or the amount of a conversion counts against that limit.



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