RMD Folks how are you using the money

[ERD50]

Boy tough problem we have, money coming we don't need. ....

RMDs are not "money coming in" from anywhere. It is money in a tax advantage account, that the IRS says we need to transfer to a taxable account.

Other than taxes, it's no different than someone consolidating two existing accounts into one. It changes nothing, other than the accounting. You are not any richer or poorer after transferring money from one account to another (outside of tax considerations).

The money we put in our Roth IRA's is earned income which is the only way we can contribute to a Roth as far as I know.

Perhaps I should have said we put all of our earned income into our Roth's up to the allowed maximum of 6500 each. The money from our RMD's is taxed and replaces the earned income we put in our Roth's.

Much clearer, thanks.

-ERD50

 

[RockDoctor]

Unless I significantly reduce my taxable income (hmm, growth stocks and muni bonds), a good chunk of my RMD is going to pay the tax on the RMD itself and on my SS.