05 Apr Can I transfer my RMD from my IRA into a Roth IRA?

Q. Can I transfer my RMD from my IRA into a Roth IRA?
— Investor

A. Yours is a common question.

Many people ask if they can take their Required Minimum Distribution from a traditional IRA and put it into a Roth IRA.

But unfortunately, it doesn’t work like that.

You cannot directly roll it over and make a Roth contribution, said Jody D’Agostini, a certified financial planner with The Falcon Financial Group in Morristown.

“The IRS has RMDs to secure the income taxes associated with taking money out from an account that was funded with pre-tax dollars,” she said. “Once you have deposited the money into your bank account, you can invest the money however you like, including making a Roth contribution if you qualify.”

Email your questions to .

This story was originally published in April 2024.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.