No. of Recommendations: 8
If you have insufficient cash in the IRA account to make the RMD withdrawal, you will need to sell assets to obtain the needed cash.

I believe it has already been mentioned somewhere in the thread that the RMD does not need to be in cash. If the OP has no need for the cash, the RMD can be done as a like-kind transfer of shares from the IRA to a taxable account. The taxes will still need to be paid, but the RMD itself does not need to actually be in cash.

I am 72 and have completed my third year of the dreaded RMD withdrawals. The two small pensions that I receive from former employers are taxable as ordinary income. My Social Security retirement benefit and my wife's spousal benefit were not taxable until I started making RMD withdrawals the year I turned 70-1/2. Eighty-five percent of our Social Security benefits are now taxable as ordinary income and at the 25% marginal tax rate due to RMD withdrawals.

I'm not sure why the RMDs are so dreaded. I'm sure there were no complaints when making the IRA contributions on deferring the taxes at that time, and it was a known fact that the taxes would need to be paid later, so this is no surprise. It is now time to pay the taxes on that income.

And as has been pointed out many times, just because you have to take the RMD out of the IRA, there is no rule that says you have to actually then spend that money. You just have to pay the taxes on it.
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