Our RMD is not needed right now -- Can I re-deposit in my Roth ? (pension, social security)

[FiveLoaves]

My RMD withdrawals come to us as a monthly check direct deposited in our local bank. We are fining that they are not needed at this time. Pension and Social Security cover our monthly expenses.

We have no W-2 or 1099-MISC Income. Only 'Income' is the RMD checks.

Can I have the RMD check re-directed into my Roth Account where it can grow tax-free??

[StealthRabbit]

Sure, Good idea!
You will just pay income tax on the RMD (but not if your total income remains below tax threshold.)
$28,700 or more over age 65 requires filing (But maybe no tax obligation)
$27,300 std deduction in 2023 MFJ over age 65 + any credits you qualify for.

Monthly withdrawals for RMD are a reasonable form of DCA (Dollar cost averaging) Buyng consistantly, reaping more aquisition when prices are low, and fewer when high)

I prefer to do transfers on RBD (Really bad days), but that is market timing, so troublesome and not deemed consistantly successful. Since I have LT holds on seleted equities, it has worked fine for me for 40+ yrs.

[mathjak107]

NOOOOOOOOO.

you cannot put money in a roth without an equal amount of earned income

[mathjak107]

Originally Posted by StealthRabbit

Sure, Good idea!
You will just pay income tax on the RMD (but not if your total income remains below tax threshold.)
$28,700 or more over age 65 requires filing (But maybe no tax obligation)
$27,300 std deduction in 2023 MFJ over age 65 + any credits you qualify for.

Monthly withdrawals for RMD are a reasonable form of DCA (Dollar cost averaging) Buyng consistantly, reaping more aquisition when prices are low, and fewer when high)

I prefer to do transfers on RBD (Really bad days), but that is market timing, so troublesome and not deemed consistantly successful. Since I have LT holds on seleted equities, it has worked fine for me for 40+ yrs.

because markets are up 2/3s of the time and only down 1/3 you are buying in higher and higher over time despite the few occasions where you get to buy low .

dca isn’t the best way to buy in , but for some it’s the only way

[BellaDL]

Originally Posted by FiveLoaves

Can I have the RMD check re-directed into my Roth Account where it can grow tax-free??

Nope! You can convert your IRA to Roth IRA but your IRA Roth conversion can not be considered as part of your RMD.


https://www.apsitaxes.com/blog/does-...r%20conversion.

You can’t convert an RMD to a Roth IRA. The IRS mandates that you first take the RMD for the year before you can perform a Roth conversion. The RMD amount is considered a taxable distribution and is not eligible for conversion.

[Nefret]

I thought Roth deposits had to be from earned income.

We transfer our unneeded RMDs into a regular mutual fund.

[Preston3124]

You may already be aware of this, but you can direct all or part of your RMD to a qualified charity and not pay taxes on it.

[mathjak107]

Originally Posted by Nefret

I thought Roth deposits had to be from earned income.

We transfer our unneeded RMDs into a regular mutual fund.

they do have to be from earned income ,he can’t throw the rmd money in a roth

[mathjak107]

Originally Posted by Preston3124

You may already be aware of this, but you can direct all or part of your RMD to a qualified charity and not pay taxes on it.

nothing like giving it all away to save the tax portion.

i would never do that unless i intended to give to that charity regardless

[TaxPhd]

Originally Posted by StealthRabbit

Sure, Good idea!
You will just pay income tax on the RMD (but not if your total income remains below tax threshold.)
$28,700 or more over age 65 requires filing (But maybe no tax obligation)
$27,300 std deduction in 2023 MFJ over age 65 + any credits you qualify for.

Monthly withdrawals for RMD are a reasonable form of DCA (Dollar cost averaging) Buyng consistantly, reaping more aquisition when prices are low, and fewer when high)

I prefer to do transfers on RBD (Really bad days), but that is market timing, so troublesome and not deemed consistantly successful. Since I have LT holds on seleted equities, it has worked fine for me for 40+ yrs.

OMG, just stop with the “advice.”