Retirees can satisfy an RMD by transferring shares in kind to a taxable account, avoiding a forced sale at depressed prices.
In-kind distributions are still taxed as ordinary income at fair market value, so retirees need outside cash to cover the tax bill.
A qualified charitable distribution sent directly from an IRA to a nonprofit satisfies the RMD with zero income tax, up to the annual limit.
Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
She is 75, retired, and looking at a brokerage statement she would rather not open. The market sold off hard this spring, with the VIX, also known as the stock market's "fear index," soaring and staying elevated. Meanwhile, several of her long-held equity positions are still well off their highs. Her investment custodian has flagged the obvious problem: her annual required minimum distribution (RMD) is due, and the default way to satisfy it is to sell shares. The problem is she does not want to sell low.
In-kind distributions are still taxed as ordinary income at fair market value, so retirees need outside cash to cover the tax bill.
A qualified charitable distribution sent directly from an IRA to a nonprofit satisfies the RMD with zero income tax, up to the annual limit.
Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
She is 75, retired, and looking at a brokerage statement she would rather not open. The market sold off hard this spring, with the VIX, also known as the stock market's "fear index," soaring and staying elevated. Meanwhile, several of her long-held equity positions are still well off their highs. Her investment custodian has flagged the obvious problem: her annual required minimum distribution (RMD) is due, and the default way to satisfy it is to sell shares. The problem is she does not want to sell low.
1 month ago
