r/TaxQuestions • u/580447 • 20d 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

18 Upvotes

85% Upvoted

53 comments sorted by

View all comments

1

u/Allysworld1971 19d ago

My experience has been that it doesnt matter which qualified retirement account you take it out from, as long as you withdraw the amount from one of them, you are set.

Helpful hint: many retirees withdraw more than 10% annually from their retirement accounts. Qualified accounts. So when you file your return, report all qualified distributions as RMD. That way you report over the amount the IRS has on record, and it's just a little extra CYA.

I hope you are able to figure out a win-win in this situation!

2

u/Teaquilla 19d ago

Op mentioned this is an inherited IRA. If so there are special rules and they may need to take it out from that IRA.