Taking RMD'S

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lucky3
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Joined: Thu Apr 12, 2012 9:21 am

Taking RMD'S

Post by lucky3 » Wed Nov 15, 2017 8:25 am

I have several IRA's from which I need to start taking my RMD's. Is it best to take the required amount from each individual IRA or can you total up the amounts from all the IRA's in 2017 and take the total amount from one IRA? Does it make any difference which you do?

Lucky3

Gill
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Location: Florida

Re: Taking RMD'S

Post by Gill » Wed Nov 15, 2017 8:35 am

No difference. Usually easiest to take all from one. Have you considered combining them?
Gill

lucky3
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Joined: Thu Apr 12, 2012 9:21 am

Re: Taking RMD'S

Post by lucky3 » Wed Nov 15, 2017 8:39 am

Considered combining the IRA's but never wanted to put "all my eggs in one basket"

Lucky3

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djpeteski
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Re: Taking RMD'S

Post by djpeteski » Wed Nov 15, 2017 8:55 am

This may be old news to some, but I learned it hear a few weeks back and provided the advice to my mom.

If you contribute to charities anyway, you may want to direct those RMDs to a charity of your choice. This will make them tax free.

https://personal.vanguard.com/us/insigh ... eak-122014

In her case, this helps a lot as she does not qualify for itemized deductions and gives anyway.

flyfishing
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Re: Taking RMD'S

Post by flyfishing » Wed Nov 15, 2017 8:57 am

I don't think combining IRA's is "putting all ones eggs in one basket" It's called convince. If you have 10 different IRA's all holding the same investments that's "putting all ones eggs in one basket".

Prudence
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Re: Taking RMD'S

Post by Prudence » Wed Nov 15, 2017 9:11 am

Combining makes sense to me. If you have a CD in your traditional IRA (like me), there may be a limit on the partial distribution amount you can take without an early withdrawal penalty.

kaneohe
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Re: Taking RMD'S

Post by kaneohe » Wed Nov 15, 2017 9:22 am

lucky3 wrote:
Wed Nov 15, 2017 8:25 am
I have several IRA's from which I need to start taking my RMD's. Is it best to take the required amount from each individual IRA or can you total up the amounts from all the IRA's in 2017 and take the total amount from one IRA? Does it make any difference which you do?

Lucky3
In principle IRS wants you to add up the RMDs from each account to determine the total RMD......then you can take them from one or more accounts.
The easy way seems to be to add the values of the accounts and then calculate the RMD. This usually works.......however if you are married and have spouse 10 yrs younger and spouse is sole beneficiary on some,but not all, accounts the divisors are different for some accounts so you need to do the calculation the IRS way but are then free to take it from one or more accounts.

sport
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Location: Cleveland, OH

Re: Taking RMD'S

Post by sport » Wed Nov 15, 2017 9:29 am

djpeteski wrote:
Wed Nov 15, 2017 8:55 am
This may be old news to some, but I learned it hear a few weeks back and provided the advice to my mom.

If you contribute to charities anyway, you may want to direct those RMDs to a charity of your choice. This will make them tax free.

https://personal.vanguard.com/us/insigh ... eak-122014

In her case, this helps a lot as she does not qualify for itemized deductions and gives anyway.
This is a Qualified Charitable Distribution (QCD). You must be at least 70.5 at the time of the distribution and the check must be made payable to the charity. If you withdraw cash and write a check to the charity, it does not meet the requirements.

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Watty
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Re: Taking RMD'S

Post by Watty » Wed Nov 15, 2017 9:40 am

lucky3 wrote:
Wed Nov 15, 2017 8:39 am
Considered combining the IRA's but never wanted to put "all my eggs in one basket"

Lucky3
You might want to reconsider that.

Managing multiple accounts may be more difficult for you in ten or twenty years as you get older. If someone like a kid or a less financially capable spouse has to manage your finances for you then having fewer accounts will also be easier for them. Someday having fewer accounts will also be simpler for whoever has to settle your estate.

I am not there yet but my plan is to get it my finances consolidated down to just a local bank for my checking and a large financial company for my investments.

WhiteMaxima
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Re: Taking RMD'S

Post by WhiteMaxima » Wed Nov 15, 2017 12:46 pm

Consolidate into single one account or two major brokeage: Vanguard and Fidelity. No more than two.

jefmafnl
Posts: 401
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Re: Taking RMD'S

Post by jefmafnl » Wed Nov 15, 2017 12:50 pm

If one wishes to donate some (but not all) of the RMD: does Vanguard have a minimum?

J

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CABob
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Re: Taking RMD'S

Post by CABob » Wed Nov 15, 2017 2:21 pm

jefmafnl wrote:
Wed Nov 15, 2017 12:50 pm
If one wishes to donate some (but not all) of the RMD: does Vanguard have a minimum?

J
I'm not sure, but I have made QCDs as low as $50.
Bob

sport
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Location: Cleveland, OH

Re: Taking RMD'S

Post by sport » Wed Nov 15, 2017 2:41 pm

CABob wrote:
Wed Nov 15, 2017 2:21 pm
jefmafnl wrote:
Wed Nov 15, 2017 12:50 pm
If one wishes to donate some (but not all) of the RMD: does Vanguard have a minimum?

J
I'm not sure, but I have made QCDs as low as $50.
I have also done $50. It seems petty to bother with a lower amount.

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Flobes
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Re: Taking RMD'S

Post by Flobes » Wed Nov 15, 2017 5:32 pm

Prudence wrote:
Wed Nov 15, 2017 9:11 am
If you have a CD in your traditional IRA (like me), there may be a limit on the partial distribution amount you can take without an early withdrawal penalty.
In my IRA, I opened a 5-yr CD and funded it with a generous guesstimate of 5 years of RMDs. The lion's share of that IRA is invested at Vanguard, having been consolidated from accounts hither and yon.

Every December 1, CD automatically distributes its RMD and I withdraw the amount of the Vanguard RMD. So I take the total combined RMD from the CD. I am spared the annual decisions about when and what Vanguard investments to sell.

Credit union accommodates withdrawals from CD of any amount (bcz it is IRA w/RMD obligations), without penalty, as long as $1000 remains in the CD until maturity. These policies vary by the institution that hosts the CD.

FWIW I'm in year four of the plan. It's way too easy!

MJS
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Re: Taking RMD'S

Post by MJS » Wed Nov 15, 2017 10:08 pm

RMDs from non-traditional-IRAs have to be calculated and taken individually from each separate category:
SEP IRAs
SIMPLE IRAs
401(k) plans
403(b) plans
457(b) plans
profit sharing plans
other defined contribution plans
https://www.irs.gov/retirement-plans/rm ... ion-plans

kaneohe
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Re: Taking RMD'S

Post by kaneohe » Wed Nov 15, 2017 10:47 pm

MJS wrote:
Wed Nov 15, 2017 10:08 pm
RMDs from non-traditional-IRAs have to be calculated and taken individually from each separate category:
SEP IRAs
SIMPLE IRAs
401(k) plans
403(b) plans
457(b) plans
profit sharing plans
other defined contribution plans
https://www.irs.gov/retirement-plans/rm ... ion-plans
Didn't see that in your link for IRAs:


IRAs including SEP, SIMPLE and SARSEP IRAs

How should I take my RMDs if I have multiple accounts? If you have more than one IRA, you must calculate the RMD for each IRA separately each year. However, you may aggregate your RMD amounts for all of your IRAs and withdraw the total from one IRA or a portion from each of your IRAs. You do not have to take a separate RMD from each IRA.

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