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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13316
Experience:  15years with H & R Block. Divisional leader, Instructor
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I need to take a required minimum distribution this year

Customer Question

I need to take a required minimum distribution this year from an inherited IRA and am wondering if I can contribute an equivalent amount to a different retirement account to continue deferring the taxes. I have a SIMPLE through work or could open a separate IRA. I'm 58 years old. Thanks very much!
Catherine
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello

The RMD from the inherited IRA would not stop you from making a contribution to your own IRA. The taxes would not be deferred on the RMD by the contribution amount.

With an Inherited Traditional IRA, you’ll pay taxes on any distributions you take this includes an RMD. RMDs cannot be rolled over into other accounts.

If you were to open another IRA then you may be allowed to deduct the contribution amount but that depends on your income and filing status. The deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels.

https://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits

The above IRS link shows the limitation based on income.

If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.

Expert:  Robin D. replied 1 year ago.

Please advise if you need more information or rating in a positive way is acceptable.