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Financial Planning / Tax Strategies
|Subject: Re: Another IRA RMD Question||Date: 7/21/2011 1:38 PM|
|Author: TMFPMarti||Number: 113786 of 122639|
Watty 56, I know you're trying to help, but you're posting a lot of incorrect information.
If the OP has some earned income and is eligible for any deductable retirements accounts(IRA, 401K, etc) then the RMD can be deposited into one of those to get an offsetting deduction so the net tax effect will be essentially zero.
No, no, no! Since OP is subject to RMD's by definition (s)he cannot contribute to a traditional IRA under any circumstance. Period. One can contribute to employer plans if still working at 70 1/2 (and delay RMD's from that plan), but those contributions must come directly from salary/wages, not external contributions. Some employer plans allow for rollovers in from other retirement accounts, but in no case can an RMD be rolled anywhere. Period.
If they are over 70 and not working that does not help much, but people who are younger and still working can often do this with RMD's from inherited IRA's
Wrong again. RMD's, including those from inherited accounts, cannot be rolled over. Period.
The references are IRS Pubs 575 and 590.
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