How To Get Your RMD's 100% Tax-Free

In today’s video we’re going to talk about how to get your Required Minimum Distributions 100% tax-free. If you have money in any sort of qualified plan such as a 401k, IRA, etc., there will come a time when the IRS forces you to take that money out. That's called a required minimum distribution (RMD). Is there a way you can receive that RMD and spend it without paying tax? Let's discuss.

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[NelsonHouse]

Acquiring a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $160K for some time now, but my major challenge is not knowing the best entry and exit strategies. I would greatly appreciate any suggestions.

[lingeng]

The goal is to maximize the after tax income, not to minimize taxes.

[sbggrace]

So take a $1 million 401K and reduce it down to $350, 000, sounds simple enough. But I would be paying taxes on the $650, 000 reduction or Roth conversion. Seems like you missed that point in your video. Nice concept but not too applicable on higher 401k balances.

[janebishop]

Would think anyone watching you would already know the standard deduction serves as the threshold for rmd to avoid any taxes.

[FrankGransee]

Hype post … yes, if your ssc benefit and your traditional IRA balance is low enough, you can avoid taxes. Not news. Roth Conversions do not avoid taxes - which was also not the claim here. With the supplemental income brackets being frozen since day one, some taxation of SSC is almost guaranteed even without additional income RMDs.

[fghhgfswetyh]

Thank you David for this valuable education

[samkitty]

What a genius. I should get rid of most of my money so that I have hardly any left...that will move me into poverty level, and enable me tax free retirement. Amazing... YouTube is full of such experts.

[BillKaras-tuzw]

Standard deduction for retirement is great, your info on how much of a Roth conversion is needed is great for planning.

[BrianH-vbok]

Reading some of these comments, a lot of them are missing the point. This is about reducing withdrawals from taxable accounts, and having more withdrawals/income from tax free accounts. This is absolutely my plan as there is no way tax rates are not higher in the future.

[davidscott]

Great / informative video - as are the others you have presented that I have watched. If I am understanding you, one should only pay taxes to convert IRA / 401K funds to ROTH if they can maintain that conversion in the 10%-12% tax bracket. Why would anyone convert funds in the 22-24% brackets if they are trying to maintain an annual income that is taxed at - 0% - 10% - 12%? I am not saying that you are conveying that, but there are CFPs on YouTube that are. Another factor I have noticed while researching conversions is how much portfolios continue to grow when averaging 5% annual growth or more and you are only withdrawing 3.65% (which is an estimated figure I assume....I believe I read an IRS table that has an amount your IRA balance is divided by each year - 26.5 @ 73 for me and reduces from there) - your RMDs will keep increasing

[datbio]

so, what to do with my other income (interest, dividend, rental income)? They all count towards the total income along with SS and roth conversion

[deterjg]

Liked and shared. Thank you for the content and knowledge sharing 🙏

[pickmeaname]

Will likely claim joint income standard deduction.

[KatieLibby]

Every third year we will fund a Donor Advised Fund above the standard deduction. Then we will use DAF for charitable donations in the two off years. In 2026 there is a chance the standard deduction will revert to a lower amount, which will make it easier to itemize.

[martinreiss]

Converting a regular Thrift Savings Plan account to a ROTH Thrift Savings Plan account in retirement is very confusing. I do not know where to begin.

[johnjackson]

If you are making less than the standard deduction during retirement you are NOT living in a house, wearing shoes, or eating food every day! I would opt for being as tax efficient as possible. Some people make ridiculous choices to avoid taxes. I knew a lady whose house was paid of and she got a HELOC for no other reason than a tax break! She and her husband missed the tax break! So she was getting 15 cents back on every dollar of her own money she was borrowing!

[TexarkanaPrepper]

But this doesn’t make sense. Roth conversions are taxed and they are taxed at the time when my salary is at the highest. So you’re saying pay way higher taxes in order to have a small amount of taxes when I’m not making much. This doesn’t seem to make much sense. Please explain.

[ninelr]

Thank you! Glad I found your channel. Can I ask? My Rollover IRA has many treasuries, in addition to stocks and ETFs. I want to convert the IRA to ROTH. The treasuries unlike stocks, do not have state taxes. So how the treasuries are taxed during the ROTH conversion?

[gregwessels]

Military pension along with SS and retirement accts, I guess I'm paying some taxes then.

[philip]

There is no tax free situation. When you reduce your IRA or 401k by either spending it or converting to a Roth, you pay tax on that. QED !