cbrevard wrote: ↑
Fri Dec 29, 2017 2:00 am
I've got $160k in an Inherited IRA which I received as a non-spouse beneficiary. I've just taken the first RMD of $3600 using Vanguard's RMD service. At the moment, it's sitting in a non-retirement brokerage account, also Vanguard.
I want to confirm a few things that are not quite clear to me:
- Can I reinvest the RMD into an existing Roth IRA?
- In order to do #1, must I first transfer the money to a bank account?
- Can I convert the balance of the Inherited IRA into a Roth IRA?
I've found contradictory information regarding #1. The second question stems from something I read on IRAHelp.org
, and the third I'm pretty sure I cannot do because of the fact that I'm a non-spouse beneficiary, but, like I said, I just want to be sure that's the case.
1) The contradictory info about #1 is probably just loose language. As your link discusses, the RMD from inherited IRA is a taxable distribution (assuming TIRA). You cannot reinvest the RMD into a Roth and expect to not pay those taxes if that is what you are thinking by "reinvest".
You cannot, e.g. have a direct transfer from inherited IRA to your Roth. Nor can you have a check made out to your Roth account from your
inherited IRA. The check will be made out to you . Whether you can deposit that check in Roth w/o complications, I'm not sure. Perhaps ask
the Roth custodian about that.........whether they will accept as an original contribution to the Roth subject to the annual contribution limits
or whether that's a problem coming from the TIRA.
2)Not sure, but this would be cleanest way to "launder" the funds and show that it's just cash.
3)no , you have the right answer since you're not spouse.