Originally Posted by
Bart523
My wife works part time and I’ve been retired for five years. We contribute the full amount of her earnings to our Roth IRA’s using RMD. The rest goes into a money market account for unexpected expenses, home improvements, and travel.
Just wondering, is that allowed? Perhaps you're moving money around per the rules, it just sounded a bit odd.
Roth IRA: Can I Put My Required Distribution in a Roth? | Money says:
IRS rules
prohibit putting your RMD into another tax-advantaged retirement account. But you
can convert the remaining portion of your traditional IRA assets to a Roth IRA, though it will mean paying more taxes. “You just have to satisfy the RMD requirement before you do a Roth conversion,” says Mingone. (If you aren’t working and receiving earned income, you can’t make a contribution to a Roth but once the money is in a traditional IRA, you don’t need to have additional earned income to move the money to a Roth IRA.)
omni