RMD for 2020

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  • Author
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  • #7558
    Lilac
    Participant

    Question : Since we don’t have to take 2020 RMD now,
    do we have to take double RMD in 2021 ?
    Thanks.

    #7559
    dienerte
    Participant

    No, you will not have to double up next year on your RMDs.

    #7560
    Lilac
    Participant

    Thank you Dienerte, good to know.

    #7602
    taxing
    Participant

    Wondering if it would be best to go ahead and take the RMD this year (2020)? There’s no doubt that eventually taxes will be going up to pay for the covid problem. Any thoughts?

    #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.

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