RMD’s
I converted my 401(k) to a personal IRA when I retired in June, 2025. I kept a net of $50,000 after taxes. Does this count as my 2025 RMD? Or do I have to take another one from the new IRA? Thanks, and I read your column and have followed your guidance for years.
Terry Says
Were you obligated to take an RMD in 2025? If so, this withdrawal should count against that amount (and might even be more than the required amount, but no, you can’t carry it forward to 2026!). But you’ll still pay taxes on the entire amount, as all withdrawals are taxed as ordinary income. I hope you had them withhold taxes on the amount not rolled, but withdrawn.
