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  • I think found a way to avoid taking RMDs. Can you tell me if it could work? Let’s say I take a distribution in December, and leave only $10 in my traditional IRA. This means that when my custodian calculates my RMD amount, it will be $0.00 (rounding to the nearest dollar) since my December 31 fair market value (FMV) will be $10. Given that I have 60-days to rollover the amount, I can complete the rollover in January, bringing back my balance to what I had before I took the distribution. I think I can do this every year and always avoid the RMD.

  • An individual is ineligible to deduct his traditional IRA contribution, and has decided to make a nondeductible contribution.  I understand that he needs to keep track of his nondeductible contribution, so as to prevent the amount from being taxed when distributed.  Should he establish a separate traditional IRA for this?