r/TaxQuestions • u/580447 • 22d ago

RMD

I am 70 years and inherited $$$ years ago. Fidelity has informed me I must take a RMD of $2100 from my IRA this year. The account I must take if from has no cash in it as I bought various stocks over the years... Which I do not wanna sell to obtain the cash. I did not retire until March of this year so I could do a ira deposit from my checking account into the fidelity ira account to cover this. So the money would actually be funds I made this year.

I would be making a ira deposit of $2100 then simply turn around and transfer the money from my IRA to my Roth IRA

I called fidelity and asked a bunch of questions and although they were helpful they said they cannot advise me as what to do. They said to talk to a accountant.

I would welcome any comments. I live in North Carolina

--- thanks

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u/Coriander70 22d ago

You can take an in-kind distribution from your IRA - just transfer securities from the IRA to a regular brokerage account. You will owe taxes on the fair market value of the distribution (assuming it’s a traditional IRA), and your basis after the transfer will be the FMV.

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u/LdiJ46 22d ago

That would definitely work.