If a person is semi-retired but still working, and is obligated to take out the RMD, could some of the RMB be reinvested in a new IRA?
- posted
2 years ago
Can RMD money be used to invest in a new IRA?
Loading thread data ...
- Vote on answer
- posted
2 years ago
No and yes. If you are required to take an RMD, you must report it as taxable income. If you have compensation income, you can contribute to an IRA. Since money is fungible, you could use the same dollars to invest - what you can't do is treat the RMD->contribution as a rollover.
Ira Smilovitz, EA Leonia, NJ