Quote:
Originally Posted by Bill Verburg
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.
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Bill, I wasn't very clear in my OP. I (and my wife) have been making RMDs for several years and understand how they work. One rule is, you cannot take the $$$ from RMD and put them in a Roth IRA.... big no no. However (as you probably know) RMDs are not required this year only.
From everything I read, this year I can convert $$ from my traditional IRA to my Roth IRA as the $$ are not an RMD, I just have to take the usual tax hit. Ideally the full amount of the withdrawal would go the Roth and I would pay the taxes due from other funds.
My question is really how to handle the taxes due if I decided to say convert $30K from my traditional IRA to my Roth IRA. I could have all the taxes withheld during the withdrawal (easiest but least desirable way) or could I have a minimal amount withheld and cover the rest of the taxes due via the final quarterly deposit in January without getting into under withholding issues ??
I was just wondering if anyone else was considering this ???