Roth Rollover as RMD

[rcline46]

Client required to take a RMD this year. However he rolled his account to a ROTH IRA early in the year and he was told it would cover his RMD since it was taxable.

I never heard of this and since it went into an IRA (ROTH) I don't think it works. DOes it? any cites?

Thank you.

[GMK]

I don't think it works.

I agree. RMD's are not eligible for rollover.

He needs to take the RMD and associated earnings out of the rollover Roth, e.g., see:

http://www.irahelp.com/forum/viewtopic.php?f=1&t=4661

Edit to add: http://www.irs.gov/retirement/article/0,,id=96989,00.html#12

and of course, Publication 590.

He could put the RMD payment in a personal Roth if he meets the usual Roth requirements, like earned income.

[Tom Poje]

if only they had rolled it before the start of the 'previous' year. once in the ROTH IRA there are no future RMDs, which is probably what they are thinking of, but its all in the timing.