An owner received a required minimum distribution. Can we roll it into another retirement account?
A required minimum distribution generally is not eligible for rollover.
By AE Tax Advisors Team · Updated October 29, 2026
A required minimum distribution generally is not eligible for rollover. Moving it to another retirement account does not make the RMD disappear and can create an improper contribution. The taxpayer must first identify the actual RMD and distinguish it from other eligible amounts distributed in the same period.
A specific business-owner situation
An owner receives a retirement-plan distribution that includes a required amount and wants to redeposit the whole check into an IRA. Only an eligible portion can be considered for rollover.
Illustrative example, not a client result.
What to establish before filing
- Calculate the required amount for the specific account.
- Separate it from other distributed funds.
- Confirm the destination account's acceptance and correction procedures.
Which fact changes the answer?
An amount above the RMD may have different eligibility from the required portion. A payment's total size does not establish the eligible amount.
A mistake to avoid
Do not assume every payment from a qualified plan can be rolled over.
Records that support the decision
- RMD calculation.
- Distribution detail.
- Rollover and account records.
The decision to document
Document the allocation before transferring funds and address any improper rollover promptly with the receiving institution.
Business-owner tax planning and preparation scope · Discuss advisory scope with AE
Related questions
- We missed an owner-only plan Form 5500-EZ. Can we use the Labor Department delinquent-filer program?
- An employee's 401(k) loan defaulted. Is that the same as a plan loan offset eligible for rollover?
Sources and editorial context
- IRS Publication 560: small-business retirement plans
- IRS Publication 575: pension distributions and plan loans
General educational information prepared with AI assistance. No individual professional review is claimed. Apply the relevant tax-year rules to the actual records. Editorial policy · AI disclosure.