Learned a couple things from this WSJ piece for (hopefully) down the road.
“If your RMD is $10,000, you can transfer—and that’s the key word: transfer—$10,000 of XYZ stock from your IRA to a taxable brokerage account. This transfer counts for your RMD. Yes, you will pay tax on the value of the stock (or stock fund) on the date the assets leave your IRA. And that value becomes your new “cost basis” if and when you sell the stock that’s now sitting in your taxable account.“
“At age 72, when withdrawals begin, only 3.65% must be withdrawn, Mr. Slott notes. At age 80, the figure is still only 4.95%. At age 90, it’s 8.2%.”
Read the thread on Tax Strategic board where this was discussed by tax experts. Lot of good info.
With zero commission trades, I don’t see the point.
You could always sell $10k of BRKB stock in your T-IRA, withdraw the cash and put into your taxable money market. You satisfied RMD. Then buy BRKB with the new present updated tax basis.
So now you learn can transfer the stock directly from your T-IRA into the taxable money market with the exact same $10k tax consequence, same RMD satisfaction, and the same new updated present tax basis. Am I missing something?
Yes, you save a few key strokes, but in a commission free world I’m not seeing any other benefit?