ira/Roth

Yes, if you meet the usual conditions for contributions to a Roth ... a) You have earned income (from a job or self employment) equal or greater than the amount you put into the Roth b) You observe the maximum limits for a Roth contribution

c) Your AGI allows you to make a Roth contribution

and you will still pay the normal tax on the RMD.

-- Don EA in Upstate NY

Probably not. The only thing we can say for sure based on the facts given is that you cannot roll your RMD into an IRA of any sort, including Roth. If you have "taxable compensation" (see IRS Publication 590) you can make a Roth contribution, but it has nothing to do with your RMD.

-- Phil Marti Clarksburg, MD

If you have an RMD, you must take it, and pay tax. If you have earned income, subject to the income limits for single/married, you may deposit money to a Roth regardless of your age. So, as long as you have earned income, there's nothing stopping you from taking the RMD, paying the tax, and putting up to $5000 in your Roth. But the way you phrase the question, the answer is no, you can't 'convert' any part of the RMD to the Roth, these are separate transactions. JOE

Not on that basis alone, but only if you have the requisite amount of earned income from a job.

Next year I'll be taking my required distribution and pay tax on same. It's just coincidental that those funds will be used to fund my ROTH account because i'm also still working. ChEAr$, Harlan Lunsford, EA n LA

Not unless you have earned income or taxable compensation. If so, your Roth contribution would be limited to either that earned income or $5,000, whichever is less

YES BUT..... I thought about doing the same thing, but my income exceeds the amount elegible for a 'conversion.'. However, even if you make over $100,000 ,you may still be elegible to put up to $ 5000 in your Roth--If you have EARNED INCOME. You could do this by a direct transfer from your traditional IRA to the Roth, at least if both are with the same broker (this would save commissions). See http://wwwtaxman.blogspot for more details about Roth IRAs,Required Min. Distributions and other related matters.

This statement is misleading. We've already established that you cannot convert an RMD, regardless of income level. The RMD must leave IRA-land forever.

What you describe is a conversion from traditional to Roth. There is no requirement that you have earned income, and there is no limit on the amount you can convert in any year. Eligibility to convert is based solely on filing status (no MFS) and Modified AGI.

-- Phil Marti Clarksburg, MD

This statement is misleading. We've already established that you cannot convert an RMD, regardless of income level. The RMD must leave IRA-land forever.

What you describe is a conversion from traditional to Roth. There is no requirement that you have earned income, and there is no limit on the amount you can convert in any year. Eligibility to convert is based solely on filing status (no MFS) and Modified AGI.

-- Phil Marti Clarksburg, MD