Hi retiredjg. Good advice as always.What you sell depends at least partly on what you are going to do with the money.
If you are going to spend it, just sell from the side (stock or bond) of your portfolio that you have too much of. Or sell a little of both stocks and bonds.
If you are doing a QCD, sell from something you have too much of. And do this first if only part of your RMD is going to a QCD.
If you are not going to spend it, sell stocks in the tIRA and rebuy the same stocks in taxable to maintain your AA. This will keep bonds in the IRA and out of your taxable account.
One more thing, you can take securities in lieu of cash for your Required Minimum Distribution. So let's say Dali needs a $50,000 RMD in 2024 and doesn't need to spend the money, he could tell Vanguard to move the $50,000 worth of let's say Vanguard Total Stock Market Index from his IRA to his taxable brokerage account. He would keep the shares, they just move to another account. The basis in the fund would be $50,000 and he would pay tax on the amount distributed. Or he could do a combination, if he needed to spend $30,000, he could take $30,000 in cash and $20,000 in Total Stock Market Index or whatever fund he chose, of course he still pays tax on the entire $50,000.
Statistics: Posted by nedsaid — Sun Aug 04, 2024 2:21 pm — Replies 48 — Views 2388