IRA Allotments and Taxable Income?

I have not drawn from my IRA at this point and I will be required to do so this year. I do not need this money at this time and do not wish to claim it as income and have to pay taxes on it. Am I allowed to have those federal mandatory IRA distrubitions roled over into some other type of account so that I don't have to claim it as income? If so, what type of account do I need to setup? Can my bank that has my IRA set this up for me and make it automatically direct those proceeds to the new non-taxable account?

Public Comments

1. No, the Required Minumum Distributions (RMD's) are designed for you to finally begin to pay income taxes on that money. So there's no legal way to avoid the taxes. If you dont take the RMD's, the penalties are very significant. Do you have other sources of income you can continue to defer or delay?
2. You must take the required distribution and pay tax on it. If you don't need that income, consider investing it in a municipal bond fund for future tax-free income.
3. Unfortunately there is no way around the RMD and the taxes that follow it. But you should check with your CPA to see from which account it is better (from a tax standpoint) to take your RMD. Sometimes it is less taxing to take from one account than another. You should also check with your CPA to see how much, if any, of your IRA can be taken from a traditional IRA and moved to a Roth IRA now, in 2009, and in 2010. If you will be 70 1/2 this year you need to open a Roth now before you actually hit 70 1/2 . But after you pay your taxes from your RMD you could put what is left over in your Roth to give you tax free future growth.