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Financial Planning / Tax Strategies


Subject:  Re: Tax handling of gifts under the annual exemp Date:  3/26/2014  2:14 AM
Author:  stockmover Number:  120583 of 132714

Hey JD,

But Ameritrade seems to enforce a stricter policy to ensure that I convert nothing until after I take out their idea of what the full RMD is.

If you convert too much and don't distribute enough to make your RMD, you will find out when you prepare your tax return or when the IRS sends you a penalty notice.

I can think of many reasons why someone would want to do a Roth conversion early in the year, yet defer their RMD to the end of the year.

As can I. But Ameritrade would not let me do it in 2013.

This is all very interesting to me. I am wondering if Schwab is so "darn picky" about the Conversion and RMD sequence. Since I've already taken my RMD for 2014 "just to get it out of the way" I guess I won't find out until next year?

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