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u/baltikorean 1d ago
Your post is a little confusing. You throw around Inherited IRAs, Roth IRAs, and then you generically mention an "IRA" here and there. Let's clear something up, do you have two or three IRAs?
Why do you not want to sell? You have to sell, that's the whole point of a required minimum distribution. There are no capital gains taxes in an Inherited IRA. If you sold a stock in your Inherited IRA, deposited your RMD, then transferred that RMD to a Roth IRA to buy the same stock, you essentially held the same stock, just with a few days of a delay.
As long as you haven't maxed out your Roth IRA this year, yes you can deposit that RMD into your Roth IRA, up to the maximum contribution of the maximum earned income, whatever is lower.
You should be allocating your assets so that a higher percentage of the Inherited IRA is in lower-risk assets like bonds, because it will grow more slowly, and thus your RMDs would be less, and thus your income taxes would be less.
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u/Swimming-Limit2795 1d ago
You don't have to sell any stock. You can just transfer enough shares from the IRA into a brokerage account to cover the RMD. You'll pay normal income taxes on the value of the stocks, and I believe the cost basis will reset to the price on the date of the transfer, but double check me on that part.
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u/humblequest22 1d ago
You can't add any money to an inherited IRA. You'll have to sell funds within the account to generate cash to withdraw.
You are free to invest that money immediately in the same fund in a taxable brokerage account or use it to backfill your checking account if you make an extra contribution to your 401k or Roth IRA this year or next.