Guest Annette Leerhoff Posted September 1, 2011 Share Posted September 1, 2011 Is a required minimum distribution (RMD) from a traditional IRA permitted to be transferred to a personal Roth IRA? The IRS has a list of FAQs regarding RMDs and question 12 is "Can RMD amounts be rolled over into another tax-deferred account?" The answer is no. However, from my reading Roth IRAs are identified as a tax-exempt vehicle and not as a tax deferred account. Any thoughts? If you can provide a particular tax code section that would be great. Link to comment Share on other sites More sharing options...
GMK Posted September 1, 2011 Share Posted September 1, 2011 RMD's are not eligible to be rolled over, not even to a Roth IRA. Here's a good summary of the main RMD rules: http://www.investopedia.com/articles/retir...p#axzz1WiC0E8yl Link to comment Share on other sites More sharing options...
ETA Consulting LLC Posted September 1, 2011 Share Posted September 1, 2011 However, from my reading Roth IRAs are identified as a tax-exempt vehicle and not as a tax deferred account. I like the way you think Just to ensure you don't get caught up in semantics when reading the technical stuff, the taxes in a Roth IRA are deferred until the time they become exempt. This becomes a reality when you take a distribution that includes earnings that do not meet the conditions for being a qualifying distribution. A good way of looking at it is: "tax deferred" would be a fruit where "tax exempt" would be an apple. An apple is a fruit, but a fruit isn't necessarily an apple. I'm trying the analogy thing, hope it works. Good Luck! CPC, QPA, QKA, TGPC, ERPA Link to comment Share on other sites More sharing options...
masteff Posted September 1, 2011 Share Posted September 1, 2011 IRS Code Section 402©(4)(B). 402© as a whole is a requirement of 408A(e). Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra Link to comment Share on other sites More sharing options...
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