Because I've put a lot of 457 money into an IRA, I have too much money in there and am taking it in the neck on income taxes. I've been putting about ten grand a year from my regular IRA into my Roth after making the RMD, but a normal projected RMD shows my almost doubling my RMD as accounts appreciate and I get older with less time to clean it out.
Under normal circumstances I would think this is the worst time possible to be even looking at my accounts, I have no desire to invest new money in this market. Tried to catch enough falling knives in my younger years.
However, if I took my RMD now and moved it into my regular accounts and added some additional money from my regular IRA into my Roth on top of that, I would, at least be getting more shares out of my IRA now. Same (required) money out of my IRA and into my regular account and Roth now would mean fewer shares and lower RMD payments in the future. If I traded depreciating index funds in my IRA for similar depreciating index funds in my regular accounts and Roth, I wouldn't really be trying to time the market because the underlying investments would be the same. I'd just be moving more money out of my regular IRA and lessening my future payments to Uncle Sam in exchange for no-tax Roths or capital gains regular accounts.
Does this make sense? Or.....
Under normal circumstances I would think this is the worst time possible to be even looking at my accounts, I have no desire to invest new money in this market. Tried to catch enough falling knives in my younger years.
However, if I took my RMD now and moved it into my regular accounts and added some additional money from my regular IRA into my Roth on top of that, I would, at least be getting more shares out of my IRA now. Same (required) money out of my IRA and into my regular account and Roth now would mean fewer shares and lower RMD payments in the future. If I traded depreciating index funds in my IRA for similar depreciating index funds in my regular accounts and Roth, I wouldn't really be trying to time the market because the underlying investments would be the same. I'd just be moving more money out of my regular IRA and lessening my future payments to Uncle Sam in exchange for no-tax Roths or capital gains regular accounts.
Does this make sense? Or.....