5 Smart Money Moves to Make With Your RMDs

Even though you cannot use RMD withdrawals to complete Roth IRA conversions, you can use them to pay the taxes triggered by those conversions. So, for example, if your RMD is $40,000, you cannot satisfy that requirement by converting $40,000 to a Roth IRA. You must first withdraw the $40,000 and move it into cash or a taxable account. Once the withdrawal is complete, you can use part or all of that $40,000 to pay the income taxes due on a separate Roth conversion completed that same year.