Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
My husband is seventy-one years old and I am a year younger. With the use of an Excel Spread Sheet my husband is able to calculate our RMD and any additional withdraws so that our Federal Income Tax liability is within a few dollars of the maximum amount for the 10 (ten) percent minimum tax rate with the estimated sale of stock with a loss.

We are considering if it would be wise to sell some of our losing stock(s) in a taxable account, which do not appear to be recovering, to obtain a loss on the 2012 Federal Tax Return. That would allow us to withdraw more than just the RMD from our IRA accounts. We also realize we would be paying taxes on the additional withdrawal funds but we would have less to pay in taxes, in future years. Or alternatively, would we be best off to sell the losing stock(s) and purchase other, hopefully better performing stock(s), and just withdraw the minimum from the IRA, meeting the RMD requirements, and worry about annual income taxes as they come due.

We also considered withdrawing an additional amount that would add to the RMD an amount that would increase my Federal Income Tax liability that I would actually have to write a check for to just less than five hundred ($500.00) dollars, thus keeping our tax payment under the $500.00 cutoff to preclude quarterly payments for estimated taxes in 2013. This would increase our IRA withdraw by only just over $1,530.00, or about 13.7 percent. Would this be a worthwhile suggested course of action in lieu of the above-mentioned considerations from the previous paragraph?
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.