M Norton Posted November 22, 2022 Share Posted November 22, 2022 Client has pension in TIAA, rolling $50,000 to Roth IRA and paying tax on that. He is also required to take an RMD, which is about $15,000. Can the $50,000 coming out of TIAA and going into the Roth cover his RMD requirement? It seems like that would be a 'no' but I am not an expert on this. Thanks. Link to comment Share on other sites More sharing options...
Lou S. Posted November 22, 2022 Share Posted November 22, 2022 No Luke Bailey 1 Link to comment Share on other sites More sharing options...
QDROphile Posted November 23, 2022 Share Posted November 23, 2022 However, money is fungible, so if the individual is eligible to contribute to a Roth IRA, the net distribution $$ can be used to fund the Roth IRA. Not a rollover. Luke Bailey 1 Link to comment Share on other sites More sharing options...
Appleby Posted November 27, 2022 Share Posted November 27, 2022 On 11/22/2022 at 3:51 PM, M Norton said: Client has pension in TIAA, rolling $50,000 to Roth IRA and paying tax on that. He is also required to take an RMD, which is about $15,000. Can the $50,000 coming out of TIAA and going into the Roth cover his RMD requirement? It seems like that would be a 'no' but I am not an expert on this. Thanks. It will cover his RMD- sure, because that would be his first distribution and therefore would go towards his RMD. But, he would then have an ineligible rollover of $15,000 to the Roth. Only $35,000 of that $50,000 is eligible to be rolled over. Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com Link to comment Share on other sites More sharing options...
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