Quote:
Originally Posted by bob47
2022 required minimum distributions for IRAs got locked in at the end of 2021 when markets were high. It's not hard to imagine markets will still be lower at the end of 2022. Are there any suggested strategies in this situation to prepare for the distribution? Maybe in kind distributions from the IRA to the brokerage account is the best strategy?
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The question for all is do we think the market will go up. Truth, honest truth is I don't know. Perhaps, an answer. RMD you are told what you must take out, AND EXPOSE TO TAX. If, you do not, you forget, or whatever, the penalties are severe.
What to do? We have been fed endlessly dollar cost averaging in terms of putting money in. You can, I AM using the same logic for my force withdrawals. If, you have your IRA and taxable account in the same brokerage, it is easy to do and the money will be in your taxable account the next day.
I would not take advice from any poster, INCLUDING ME, without confirming it. Something to investigate. The REQUIRED IRA withdrawal is taxed at your highest tax rate. No long term gains etc apply. The tax can be huge. You can donate up to 100,000 to A CHARITY and avoid paying TAX on it. It is UP TO 100,000 you may choose not to give that much. Reminder, this forced withdrawal is taxed as ordinary income and may well increase the tax you owe on other income. As stated CONFIRM what I am saying. The charity must be listed as 501c3, I think that is the code. Most charities, LEGITIMATE CHARITIES are so listed. You cannot double dip. Avoid tax on your RMD and take it as a tax deduction.