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Subject:  Re: RMD strategy Date:  6/24/2017  6:29 PM
Author:  BruceCM Number:  20337 of 21722

I'm a bit confused. A CFP is a Certified Financial Planner who, normally, will be doing financial planning with you. Tax preparation is not financial planning....its tax preparation. Usually, you'll have a CPA, EA (Enrolled Agent) or one of the large tax prep companies (Jackson Hewitt, H&R Block, etc) with state certified tax preparation specialists doing your tax for you. If you've not paying the CFP for other than tax prep, that would explain why he/she is not advising you on how to take advantage of any 15% headroom.

By a 'qualified account', I assume you're speaking of an employer sponsored retirement plan, such as a 401(k) or profit sharing plan? If so, you'd probably be better off doing a direct (agent-to-agent) rollover of the qualified plan balance to your Traditional IRA, which will be entirely tax neutral. Then you can do a Roth conversion using any 15% headroom. This will effectively reduce the RMD you'd otherwise have at 70.5.

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