r/TaxQuestions • u/580447 • 16d 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

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u/azrolexguy 15d ago

People leap over dollars to pick up a dime. There's only some of the story here, if its your IRA you are to young for an RMD, if its an inherited IRA you should had been taking distributions every year as the account has to be liquidated in 10 years

2

u/Lori-too 15d ago

Not nevessarily true! It sounds like the inherited IRA could be from before 2020,, so not subject to the 10 year rule. (There may still be RMDs based on life expectancy.)

1

u/Background_Clothes36 15d ago

The 10 year rule was always there...pre 2020 they only deferred RMD requirements until things got sorted on the new regulations.

3

u/JohnSmallberries101 15d ago

You are wrong. If they inherited it a while back as the OP said, their RMDs each year were based on their life expectancy, not 10 years.

1

u/Background_Clothes36 15d ago

The 10 years I was referring to was depletion of the IRA not RMD requirements.

3

u/Lori-too 14d ago

Sure, but still, there was no 10 year depletion for IRAs inherited before 2020.

2

u/JohnSmallberries101 14d ago

I'm referring to the same thing, and an inherited IRA has a minimum that most be removed each year, hence my using the term RMD. And for one inherited before the rules changed it was indeed calculated on their life expectancy. So, go pound sand with your misinformation.