Take RMD withdrawal before or after capital gains distributions?

[lucky penny]

In taking my RMD from a mutual fund in an IRA next month, is it generally better to take the funds before or after capital gains distributions have been made? Or maybe there's no difference?

Always wondered about this & it's about time I find out!

 

[SecondCor521]

Generally speaking, it doesn't matter.

The fund price will drop by the amount of the capital gains distribution on (essentially) the same day that the distribution is made and by the same amount.

There can be differences in tax treatment to selling before or after a capital gains distribution in a taxable account, but in the case of an IRA all distributions are treated as ordinary income so it doesn't matter.

 

[latexman]

My understanding, I haven’t taken RMD’s yet, is you calculate your RMD for a given year by dividing the value of each retirement account at the end of the previous year (12/31/2022) by the distribution period based on what your age will be in the year you take the RMD (2023).

I don’t see how the capital gains distribution of the mutual fund into the IRA would affect the RMD calculation. So, no difference.

 

[jebmke]

no difference. Distributions have no effect.

 

[audreyh1]

In taking my RMD from a mutual fund in an IRA next month, is it generally better to take the funds before or after capital gains distributions have been made? Or maybe there's no difference?

Always wondered about this & it's about time I find out!

For an IRA it makes no difference at all.