Couple of other ideas/things to consider when taking RMDs (as I'm working on my Dad's right now):
If the brokerage holding/servicing the IRA withholds state/federal tax (at the account holder's request of course), then the proceeds moved to the taxable account or withdrawn out of the IRA are immediately reduced by the amount of the tax. So, you'll have less money working for you still invested in the market.
I've identified what I'm selling in his account to make up the RMD. I'll take that cash and invest it in a CD until December when I *take* the RMD and have the taxes withheld and finally transfer out of the IRA and into his taxable account.
So, I'll have the full value of the RMD working until 'the last minute' when the taxes are withdrawn and the taxed proceeds transferred out.
If you chose not to withhold the taxes then it wouldn't make much of a difference if the proceeds of the sales to make up the RMD are transferred to the taxable account and fully reinvested.
If the brokerage holding/servicing the IRA withholds state/federal tax (at the account holder's request of course), then the proceeds moved to the taxable account or withdrawn out of the IRA are immediately reduced by the amount of the tax. So, you'll have less money working for you still invested in the market.
I've identified what I'm selling in his account to make up the RMD. I'll take that cash and invest it in a CD until December when I *take* the RMD and have the taxes withheld and finally transfer out of the IRA and into his taxable account.
So, I'll have the full value of the RMD working until 'the last minute' when the taxes are withdrawn and the taxed proceeds transferred out.
If you chose not to withhold the taxes then it wouldn't make much of a difference if the proceeds of the sales to make up the RMD are transferred to the taxable account and fully reinvested.
Statistics: Posted by dangrad — Thu Jun 06, 2024 12:38 am — Replies 14 — Views 2190