Just be aware that the December withdrawal, though 99% withheld for taxes, will be a taxable event itself in its entirety.If you don't need the money from an RMD, why not first do any QCD's early in January and then in January take around 80 % of the remaining RMD from a stock account and transfer it to a similar stock account in taxable (eg. TSM in IRA to S&P 500 in taxable). Then this 80% grows approximately the same in taxable as in the IRA. If this gain was in an IRA, then when removed it would be taxed as ordinary income but in a taxable account it would be treated as a capital gain (lower rates) but only when liquidated. I chose 80% assuming that your federal and state tax rates was 20 %. Take this 20% out in December and use all of it (only 99% allowed in Vanguard accounts) to pay federal and state taxes. We have not done this yet as my wife doesn't have an RMD now but will shortly, but we plan to do this in the future as her RMD is not needed. Please critique.
Statistics: Posted by Mullins — Sun Jan 11, 2026 9:29 am — Replies 47 — Views 4651