Quote:
Originally Posted by 74-911
As we are not required to do a RMD this year, is anyone else considering rolling money from their traditional IRA to their Roth IRA? Will have to take the tax hit but will eventually have to anyway and who knows what tax rates will be in the future - definitely will not be lower however.
Ideally would have done this in the spring/summer when the market was way down but ain't hindsight wonderful? Kind of the last thing on my mind at the moment.
Ideally would also pay the taxes due from other funds rather than withholding from the IRA withdrawal but wouldn't this cause issues with under withholding if you wait until the January quarterly deposit to pay the taxes due ?
Comments anyone ??
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RMD was extended for 2yrs, It used to be the year you turned 70 1/2, now if your 70th birthday is July 1, 2019 or later, you do not have to take withdrawals until you reach age 72
When you do a RMD you do not have to sell a stock or mutual fund, you can do a transfer in kind, for example if you have 100 shares of say Amazon in an IRA, you can transfer those shares to your regular brokerage account, as part or all of the RMD as long as the net $ amount satisfies the regs.