401K RMD take when low or high?

[VolvoGirl]

Does it matter since the RMD is all taxable?  I can't wrap my head around it.  If you take it when it is low then you need to sell more shares.  So you have less shares to grow.  Guess it's like selling personal shares, buy low sell high?  

[Bsch4477]

Focus on the value of your retirement plan not the number of shares. Better to withdraw when the value is higher )sell high, buy low) but no one can successfully time the market. One approach is to take quarterly withdrawals of the same amount to attempt to even out price fluctuations. 

[VolvoGirl]

Thanks, good idea.  

[NCperson]

it is best to 'distribute low', but market timing is almost impossible.

example: my Trad IRA has $1,000,000 balance in stocks.  The stock market tanks to $1.  I distribute the entire balance  in kind to my non-qual accounts and pay the 22 cents in ORDINARY tax..  

The market sky-rockets and my investment is again worth $1,000,000.  My cost basis is $1, so if this is sitting in a Roth, no additional tax to be paid (assuming I am over 59.5 years old and the Roth has been open for 5 calendar years upon distribution).  If this is sitting in a non-qual account, I get capital gains treatment (after one year) and if it's still in the account when I pass, my heirs get the benefit of the step-up.   

[DatBio]

@VolvoGirl   when you hit the RMD age, you must take certain amount for that year which can be a large amount and can impact your tax.  I suggest you plan ahead of RMD age and decide if you should begin withdraw earlier.

If you want to keep those assets to continue to grow, consider conversion to ROTH which does not have RMD.