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Financial Planning / Tax Strategies


Subject:  Re: IRA to Roth Date:  1/4/2013  4:24 PM
Author:  CABob Number:  117295 of 127616

DoLoop's explanation is correct, but, I would describe it differently to avoid confusion.
The RMD and the Roth contribution are two separate transactions so it is not like an IRA rollover. If you are taking RMD from a TIRA you must do so to prevent penalties and you will pay income tax on the withdrawal.
You can make a contribution to a Roth IRA, but, it is subject to all of the rules associated with such a contribution (earned income, income limitations, contribution limits, etc.).

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