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  • 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 rollover the amount in January, bringing my balance back to what it was before I took the distribution.  I think I can do this every year and always avoid the RMD. Do you agree? And if not, why not?

  • 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?