Can you roll-over RMD monies from a traditional IRA to a Roth IRA the year you turn 70.5?

[henri3]

My wife and I are both retired and drawing Social Security.  I will be 70.5 in 2018 and I need to do a Required Minimum Withdrawal (RMD) from my IRA that was all funded with pre-tax dollars while I was working.  We will not need all of the RMD monies for our living expenses so is it possible to roll-over the remainder of the RMD money (after taxes are paid) into a Roth IRA to eliminate tax liabilities on future gains; i.e., can this RMD money be considered earned income, which I think is a requirement for funding Roth IRAs.

[henri3]

Can I roll-over monies from an IRA to a Roth IRA in addition to withdrawing the RMD amount.  What would the max roll-over contribution be?

[dmertz]

I provided that the answer to this while you were typing.  See my comment below.

[Critter · Accepted solution]

NO ... you may never roll over an RMD ... you must take it out and leave it out.  

[dmertz]

The RMD is also not earned income for the purpose of making an Roth IRA contribution.

After you complete your RMDs for the year, you can convert other money in your traditional IRA to Roth during the same year.  Unfortunately, this increase in your taxable income can often increase the amount of Social Security income that is taxable, so it might not be a practical option.  However, if your income is already high enough that the full 85% of your Social Security income is taxable, it would make sense to investigate whether making Roth conversions to fill up the remainder of your current tax bracket (or more) would be worthwhile.  You are permitted to convert any other amount after you have satisfied your RMD.