brenda4672
Level 3
10-22-2021
04:18 PM
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Had the following question posed to me from a financial advisor to my tax client and I'm just not sure how to answer it. I have an idea of what to tell them but any sort of enlightenment would be appreciated. Thanks!
"With the law change removing the age limit on Traditional IRA contributions, I should be having you take your 2021 RMD this year, but withhold zero taxes from it, and then essentially deposit the same funds back into your IRA as a 2021 deductible contribution. Your RMD this year is $6,288.29, so we could essentially fully negate the taxation of it by depositing back in."
Best Answer Click here