RMD
Hi, Terry, I’m retired and 78 years old, can I rollover my RMD to my Roth IRA if I don’t need the money for my living expenses? I understand that I have to pay tax for my RMD. Thank you!
Terry Says
Be very careful about doing that at this stage of your life. Yes, you will owe taxes. And the rollover amount is considered income. That could raise your Medicare Part B premiums, and also Part D premiums.
And why would you do that? Many people do it earlier to get tax-free growth of the account after the conversion. But at your age, it’s not such a profitable strategy.
I suggest you just take your RMD, and if you don’t need to spend it then leave it in a money market deposit account in your bank on an after-tax basis.
