Personal Finance and Investing

Last edited Sat Jul 3, 2021, 04:10 PM - Edit history (1)

Thanks for the headsup.

Luckily (taxwise anyway) i don't have anywhere near $5M in my Roth account (and won't ever with near metaphysical certainty), and as for Roth conversions, I've converted everything that I can convert except a relatively small amount that I expect to convert this year, and if I don't, who cares, I'll donate the RMDs to charity via QCD when I reach age 72 (that way I don't pay tax on the distribution, and neither does the charity).

Edit - RMDs for regular traditional IRA are required beginning at age 72 (sort of, in general, one can wait til April of the year following turning age 72, but then one ends up taking 2 distributions in one calendar year blah blah and so on) -- thanks question everything

Separately I have an inherited traditional IRA that I can't convert to Roth (that's not allowed for inherited IRAs). Unfortunately I have to take about $15,000/year in RMDs so that adds quite a lot to the annual tax bill, and that amount is growing rapidly as the divisor for figuring RMDs is quickly getting smaller. I might "QCD" those to charity when I reach age 70.5 in the not-overwhelmingly-distant future. (Qualified Charitable Distribution)

Edit - one can start taking QCD's at age 70.5. Since i have been and have to take RMDs on the above inherited account, no matter what my age, this is a great option for me to exploit when I turn 70.5.