"Brokerage accounts" have nothing to do with this. They are just accounts that allow you to buy (and sell) more than just mutual funds. You can also buy/sell individual stocks, bonds, ETFs, CDs, crypto, and other kinds of assets.I will note, it's perfectly fine to take that RMD money and add it to your brokerage account - no one forces you to spend it!
A brokerage account can be titled as a tax-deferred account (like an IRA or 401K), a Roth account, a taxable account (like your individual name or joint names, or a trust name), a 529 account, or other types of accounts. The important thing here is that the RMD must be moved to a taxable account or be given to charity! Withholding for taxes is just a shortcut for moving the money to taxable then immediately sending it to the tax authorities.
Well, the taxes would be the same either way. But you can't convert an RMD.This is an important point. Depending mostly on the amounts involved, an RMD to ROTH may be no different than an RMD to taxable
Statistics: Posted by celia — Mon Jun 10, 2024 4:37 am — Replies 19 — Views 1193