The RMD option most people don't know exists

Most people approaching 73 think about RMDs one way: the IRS tells you to take money out, you take money out. In cash.

That's the default. It's also not the only option.

IRS Code 408(m) allows Required Minimum Distributions to be taken in-kind — meaning you can transfer securities directly out of your retirement account without first liquidating them. Instead of selling shares to generate the cash, the shares themselves move.

The practical difference: you're not forced to sell at a time that may not be optimal. The securities keep their cost basis. And depending on your situation, the tax treatment may be more favorable.

Not every custodian makes this easy, and not every situation benefits from it. But it's a conversation worth having before the distribution processes — because once the cash hits your account, the decision has already been made for you.

The Move
If you're approaching 73, ask your custodian specifically about in-kind RMD distributions before year-end.

— Daniel Mercer

Founder, The Provider