Yes, but you must understand the terminology. An RMD is not a specific transaction. It is a dollar amount that you must withdraw during the year in order to avoid a penalty, based on your age and the size of the account. You can always withdraw more, but if you withdraw less, you will be subject to a penalty. People who don’t need to spend their retirement money usually take a distribution at the end of December to meet the rule, but it is just an amount that must be withdrawn at some point during the year.
The amount that you are required to withdraw is not allowable for rollover. But if you withdraw more than the required minimum, that additional amount is eligible for a rollover into another 401(k) or into an IRA (as long as it is within 60 days). This is an indirect rollover, and in order for it to work you have to contribute the entire gross amount as the rollover, not the net amount after taxes. You will get credit for all of the taxes, and if you owe less tax then was withheld, you’ll get a refund.
