[Stu from NYC]

Originally Posted by retiredguy123

All earnings from an IRA are taxed as ordinary income. So, it doesn't matter whether you have capital gains or not. Capital gains inside an IRA do not count as capital gains. I was just suggesting that, if you want to keep the same type of stocks, you can replicate them by buying the same stocks with the RMD money. But, any stocks you purchase outside of the IRA, will have a new tax basis, even if they are the same stocks you had inside the IRA. There is no tax benefit by buying "in kind" stocks with the RMD money. The RMD money will be immediately taxed as ordinary income regardless, and you cannot defer it.

Very true we signed up to pay taxes on the money invested in the IRA or 401 from the getgo.