I'm wondering if this is a reasonable approach/strategy for future RMDs:
To satisfy an RMD for a particular year, transfer, In-Kind, a partial amount of my bonds from an IRA/401K to my taxable account, then pay the taxes with Cash in my taxable account (or by selling stocks/bonds in my taxable account).
Using In-Kind transfers, I wouldn't need to hold a bond ladder within my tax deferred accounts that matured each year. I could have just a single bond, and a portion of that bond would be transferred In-Kind each year. So I wouldn't be selling before maturity.
For example:
RMD: $100k
I transfer In-Kind $100k of a $200k T-Note into my taxable account. Then, pay the taxes by selling whatever I want within my taxable account.
Any Gotcha's in this approach?
To satisfy an RMD for a particular year, transfer, In-Kind, a partial amount of my bonds from an IRA/401K to my taxable account, then pay the taxes with Cash in my taxable account (or by selling stocks/bonds in my taxable account).
Using In-Kind transfers, I wouldn't need to hold a bond ladder within my tax deferred accounts that matured each year. I could have just a single bond, and a portion of that bond would be transferred In-Kind each year. So I wouldn't be selling before maturity.
For example:
RMD: $100k
I transfer In-Kind $100k of a $200k T-Note into my taxable account. Then, pay the taxes by selling whatever I want within my taxable account.
Any Gotcha's in this approach?
Statistics: Posted by LISD — Mon Jun 24, 2024 5:16 pm — Replies 2 — Views 378
