Reply To: RMD for 2020

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#7603
dienerte
Participant

Taxing,
My thinking is that you have two choices; do a Roth conversion up to the amount of your 2020 RMD or, if you are charitably inclined, do a QCD with some or all of your RMD up to the $100K limit. I personally have done both of these actions in 2020.

In doing a Roth conversion that amount will be taxable for 2020 but it will reduce the value of future RMDs by reducing the value of your taxable investment account, thus saving taxes in the future. I personally feel that taxes will rise after 2026.

By doing a QCD in 2020 that money will not be taxable income if done and reported correctly on your 2020 federal tax return. It will also reduce your future taxable RMDs by reducing the value of your taxable account.