You cannot reinvest an RMD into a Roth IRA as a rollover or conversion — federal law excludes required minimum distributions from the types of money that can move directly between retirement accounts. What you can do is take the cash after the RMD hits your bank account and contribute it to a Roth IRA as a regular annual contribution, provided you have earned income and your modified adjusted gross income falls below the Roth limits. For 2026 the contribution cap is $7,500, or $8,600 if you are 50 or older.
Why a Direct Rollover Is Not Allowed
The IRS specifically lists required minimum distributions among the distributions that cannot be rolled over to another retirement account.1Internal Revenue Service. Rollovers of Retirement Plan and IRA Distributions This holds whether the destination would be a traditional IRA, a Roth IRA, or a 401(k).
An ordering rule tightens things further. In any year you owe an RMD, the first dollars pulled from that account count as the RMD.2Internal Revenue Service. Retirement Plan and IRA Required Minimum Distributions FAQs You cannot convert other funds first and treat the RMD as something you’ll handle later. The RMD comes out, lands in a taxable account, and is reported as ordinary income before any conversion or rollover can happen with the rest.
If you deposit RMD money into a Roth and label it a rollover, the IRS treats it as an excess contribution and charges a 6% excise tax on the amount for every year it sits there.3Internal Revenue Service. Excess IRA Contributions
Earned Income Is the First Gate
You can still fund a Roth IRA with the cash from your RMD, but only as a fresh annual contribution, and only if you have taxable compensation at least equal to what you contribute. Federal law caps IRA contributions at the lesser of the annual limit or your compensation for the year.4Office of the Law Revision Counsel. 26 USC 219 – Retirement Savings
Compensation that counts includes wages, salaries, tips, commissions, bonuses, and net self-employment earnings. It also includes taxable alimony from a divorce decree finalized on or before December 31, 2018, and nontaxable combat pay for members of the Armed Forces.5Internal Revenue Service. Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs)
What does not count: the RMD itself, Social Security, pension payments, interest, dividends, rental income, and capital gains. A retiree who has stopped working entirely and has no self-employment earnings cannot contribute to a Roth IRA in their own name, no matter how large the RMD is.
Income Ceilings for 2026
Earned income opens the door. Your modified adjusted gross income has to be low enough to walk through it. For 2026 the phase-out ranges are:6Internal Revenue Service. 401(k) Limit Increases to $24,500 for 2026, IRA Limit Increases to $7,500
- Single or head of household: contribution phases down between $153,000 and $168,000 of modified AGI and is gone above $168,000.
- Married filing jointly: phase-out runs from $242,000 to $252,000.
- Married filing separately: phase-out runs from $0 to $10,000, so almost any income disqualifies you under this status.
Your RMD is part of your adjusted gross income. A large distribution can lift your MAGI into the phase-out or past it entirely, shrinking or wiping out the contribution you were planning to make. Do the math for the year before you deposit anything.
How Much You Can Actually Move
Meeting both gates still leaves the annual cap. For 2026:7Internal Revenue Service. Retirement Topics – IRA Contribution Limits
- Under age 50: $7,500.
- Age 50 or older: $8,600, which is the standard $7,500 plus a $1,100 catch-up.6Internal Revenue Service. 401(k) Limit Increases to $24,500 for 2026, IRA Limit Increases to $7,500
The cap covers your combined traditional and Roth IRA contributions, not each account separately. If you put $3,000 into a traditional IRA, only $4,500 remains for a Roth that year (assuming you are under 50). A retiree with a $40,000 RMD cannot funnel the whole amount in. Only the annual limit, and only if earned income supports it. Anything past the cap triggers the same 6% excise tax on the excess for every year it stays in the Roth.3Internal Revenue Service. Excess IRA Contributions
How to Do It Correctly
Treat this as two separate transactions. First, take your full RMD from the traditional IRA or employer plan. You can have federal and state income tax withheld from the distribution or pay it later from other funds when you file.
Once the money is in your bank or brokerage account, deposit up to the allowable amount into your Roth IRA. Label it a regular contribution for the tax year, not a rollover and not a conversion. The wrong label is what creates the reporting problems and penalties described above.
You have until the tax-filing deadline to make the contribution. For the 2026 tax year that is April 15, 2027.8Internal Revenue Service. IRA Year-End Reminders Your Roth IRA custodian reports the contribution to the IRS on Form 5498.9Internal Revenue Service. Form 5498 – IRA Contribution Information
No Earned Income? Look at a Spousal Roth
If you are fully retired but your spouse still works, a spousal IRA can carry your contribution. A working spouse can fund an IRA for a non-working spouse when the couple files jointly and the working spouse’s compensation is enough to cover both contributions.7Internal Revenue Service. Retirement Topics – IRA Contribution Limits
For 2026, funding two Roth IRAs fully when both spouses are 50 or older requires at least $17,200 in earned income between them ($8,600 each). If only the retired spouse is 50 or older and the working spouse is under 50, the floor is $16,100 ($8,600 plus $7,500).5Internal Revenue Service. Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs) Combined modified AGI still has to fall below the married-filing-jointly phase-out of $252,000.
Converting Other Traditional IRA Money
The RMD itself cannot be converted, but the traditional IRA funds beyond it can. After the full RMD is out, you can convert some or all of what remains in the traditional IRA to a Roth. This path has no annual dollar cap and no earned-income requirement.
The order matters: RMD first, conversion second. Both amounts are taxable income for the year, so a conversion in an RMD year can produce a large tax bill. In exchange, the converted money grows and comes out tax-free later, and Roth IRAs owe no RMDs during the owner’s lifetime. Conversions tend to work best in years when other income runs lower than usual, and many retirees stage them across several years to avoid a bracket jump.
A Charitable Route If You Just Want the Tax Break
If you have no earned income and no working spouse, a qualified charitable distribution will not get RMD money into a Roth, but it can keep the RMD from raising your tax bill. A QCD moves money directly from your traditional IRA to a qualifying charity, counts toward your RMD, and is excluded from taxable income.10Internal Revenue Service. Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs)
You must be at least 70½. The 2026 QCD limit is $111,000. The funds have to travel directly from the IRA custodian to the charity; if the money hits your account first, it doesn’t qualify. On your return, you list the full distribution on the IRA distributions line and enter the reduced taxable amount (often zero) on the taxable-amount line, writing “QCD” next to it.11Internal Revenue Service. Retirement Plans FAQs Regarding IRAs – Distributions (Withdrawals)