Personal Finance (Not Investing) • Use RMD to pay taxes

My wife is a co-owner of her banking accounts and they have $300k in them.

The bank account is irrelevant to any RMD except that the remaining RMD (not withheld for taxes) may not pass smoothly from an IRA held by one person into a checking account held by another person (DW would then be sole owner of the checking account, unless you mean a trust owns the checking account). This is even more reason to take the RMD early.

And she is the sole trustee on the trust. So I think we're ok there.

Being a trustee for MIL's trust is also irrelevant. The trustee is just the person authorized to take actions on behalf of the trust. It is the beneficiaries that will end up with the trust assets. (The same person can be a trustee and a beneficiary.)
[and can even be the same person as the grantor, as in the case of a living trust]

Statistics: Posted by celia — Sat Mar 23, 2024 11:15 pm — Replies 28 — Views 2142

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