Take RMD before or after mutual fund distribution | Ed Slott and Company, LLC

Take RMD before or after mutual fund distribution

My traditional IRA contains only mutual funds which make large distributions in December. In the past I've taken my RMD in late December after the distribution. Now I'm wondering if I would be better off financially taking the RMD before the December distributions. Or maybe it doesn't make a financial difference whether I do it before of after. I would appreciate any advice. Norm

It does not make any difference because the NAV of your fund drops in proportion to the amount of the distribution. The total value of your IRA account therefore does not change with respect to what the year end value will be that is used to calculated the following year's RMD.

.  I've been puzzling over this for a while and appreciate your quick and informative response.  Norm

 

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