What's the best way to handle RMDs in order to save in my IRA?

What would be the best way to take RMDs in order to try to save as much as you can in an IRA. I'm thinking that if you had stocks that paid dividends, that would be the best way, so that I could use the dividends to try to keep as much in the IRA as possible. Also, are there any tax loopholes that can be applied to the distributions?

Financial Planning, IRAs
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July 2017
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Whether stocks pay dividends or not is irrelevant; the RMD is calculated as of the closing price the previous December 31.

The way to minimize RMDs is to start converting your non-Roth retirement accounts into Roth accounts.  I began at age 40 and I usually make one or more conversions each month, so that when I reach 70-1/2 my non-Roth accounts will be relatively small compared with my Roth accounts.  I recommend this for nearly all of my clients.  I have even told teenagers with Roth accounts to begin the practice of converting them to Roth accounts.  The way to do this is to convert whatever is most undervalued and oversold, so that you pay tax at the lowest rate and so that all future gains are tax-free.

If you convert anything which ends up dropping further in value, you can unconvert or recharacterize those conversions back into a non-Roth IRA by October 15 of the following year, and then convert them a second time at a lower price.  You can repeat this process as often as you like as long as you follow the rules.

July 2017