RMD monthly distribution question

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Blueberry2009
Posts: 8
Joined: Sat Aug 31, 2019 1:12 pm

RMD monthly distribution question

Post by Blueberry2009 »

If my RMD is automatically calculated by my custodian (Vanguard for instance) and that RMD is 1111.23 for 2022. If also I have that set up to be automatically distributed to me monthly that would be 92.60 (actually 92.6025) per month. Then at year end I only have been distributed 1111.20, which is 3 cents short, correct? Or would (or should) the custodian distribute 92.63 on the last monthly distribution of the year so that I have the full 1111.23?
trueblueky
Posts: 2225
Joined: Tue May 27, 2014 3:50 pm

Re: RMD monthly distribution question

Post by trueblueky »

Rounded to whole dollars, it's correct.
Geologist
Posts: 1656
Joined: Fri Jan 02, 2009 7:35 pm

Re: RMD monthly distribution question

Post by Geologist »

trueblueky wrote: Thu Jan 13, 2022 7:07 pm Rounded to whole dollars, it's correct.
The OP is probably worried about the excise tax for not taking a large enough RMD. The excise tax is, of course, 50% of the insufficient amount or (in this case) 1.5 cents. :D
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