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URL:  http://boards.fool.com/usually-i-can-see-where-if-the-rule-were-29428255.aspx

Subject:  Re: Another IRA RMD Question Date:  7/21/2011  5:00 PM
Author:  ptheland Number:  113796 of 121219

usually, i can see where if the rule were different, someone could take advantage /Or someone would lose advantage.

.. i don't really see either with the "convert IRA to Roth OK; convert RMD to Roth not OK"


Seems pretty clear to me. **

RMDs get the money out of the IRA (or other retirement account) umbrella. The withdrawal itself is taxable, and any earnings the withdrawn money generates are also taxable.

If you could roll the RMD into a Roth, only the withdrawal would be taxable. The earnings would continue to be tax sheltered.

--Peter


** Like you, I find a lot more common sense in the tax law than most people, probably from working as a CPA and tax preparer for the bulk of my career.
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