Required Minimum Distribution
If I want to make a large purchase (new car), can I apply part of my withdrawal from an IRA to the next year? For example,take the rmd for 2013 and take additional funds and apply those additional funds to the rmd for 2014?
Permalink Submitted by Alan - IRA critic on Fri, 2013-02-01 00:19
No. You still must take your normal 2014 RMD regardless of how much you distribute in 2013. Of course, your account value will drop due to a larger 2013 distribution, but that will only reduce your 2014 RMD by a small amount. Why not pay part of the purchase in cash and finance the rest for 1 year. Then you can take your 2014 RMD next January and pay off the car loan. Interest rates are low enough that you should save by doing that vrs a much larger taxable distribution in 2013.