Question about Vanguard RMD Service with Brokerage Accounts

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EyeDee
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Question about Vanguard RMD Service with Brokerage Accounts

Post by EyeDee »

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Will Vanguard's Required Minimum Distribution Service allow one to set up automatic withdrawals from bond funds in a brokerage account without going through the settlement fund?
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Re: Question about Vanguard RMD Service with Brokerage Accounts

Post by inverter »

To deposit into a bank account?
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Re: Question about Vanguard RMD Service with Brokerage Accounts

Post by abuss368 »

I am curious about this as well as I just converted. I help my parents every year with their RMD but that is with the older mutual fund platform.

I did read a response that RMD’s for brokerage can not be completed ont he 1st of the year but rather days or a week later.
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EyeDee
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Re: Question about Vanguard RMD Service with Brokerage Accounts

Post by EyeDee »

inverter wrote: Sat Nov 21, 2020 12:09 pm To deposit into a bank account?
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Preferably. My question was about the source not the target. Can the automatic service withdraw directly from bond funds and go to a bank account or possibly mutual funds or a settlement fund in a taxable Vanguard account without going through a settlement fund in the IRA?
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Re: Question about Vanguard RMD Service with Brokerage Accounts

Post by Doom&Gloom »

I just checked my Rollover IRA account which I converted to brokerage from mutual fund in 2019. My RMD settings carried over in the transition.

My automatic scheduled RMD distribution hit in January 2020 from a bond fund to my checking account as well as to federal withholding. I can find no indication in my statements or my transaction history that anything went through my Vanguard settlement fund.
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Re: Question about Vanguard RMD Service with Brokerage Accounts

Post by HueyLD »

“ Can I withdraw more than my RMD from my IRA?

Yes, but not through Vanguard's RMD Service. You can arrange single distributions from your IRA at any time online through your Vanguard.com account or by completing and submitting an IRA Distribution Request form.

Alternately, you can sign up for our Automatic Exchange Service and schedule transfers from your IRA to a nonretirement Vanguard account. You can also use our Automatic Withdrawal Service to schedule regular withdrawals from your IRA to your bank or credit union account.”

https://personal.vanguard.com/us/conten ... ontent.jsp
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Re: Question about Vanguard RMD Service with Brokerage Accounts

Post by rkhusky »

Actually, all transactions in brokerage accounts go through the settlement fund (the last column in the transaction history lists the settlement fund transactions). But it is automatic, you don't need to do it manually.
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Re: Question about Vanguard RMD Service with Brokerage Accounts

Post by EyeDee »

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Doom&Gloom & rkhusky,

Thank you.
Doom&Gloom wrote: Sat Nov 21, 2020 1:02 pm I just checked my Rollover IRA account which I converted to brokerage from mutual fund in 2019. My RMD settings carried over in the transition.

My automatic scheduled RMD distribution hit in January 2020 from a bond fund to my checking account as well as to federal withholding. I can find no indication in my statements or my transaction history that anything went through my Vanguard settlement fund.
rkhusky wrote: Sat Nov 21, 2020 1:30 pm Actually, all transactions in brokerage accounts go through the settlement fund (the last column in the transaction history lists the settlement fund transactions). But it is automatic, you don't need to do it manually.
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Re: Question about Vanguard RMD Service with Brokerage Accounts

Post by Dead Man Walking »

rkhusky wrote: Sat Nov 21, 2020 1:30 pm Actually, all transactions in brokerage accounts go through the settlement fund (the last column in the transaction history lists the settlement fund transactions). But it is automatic, you don't need to do it manually.
Is the settlement account for retirement accounts a tax-sheltered settlement account or is it a taxable settlement account?
After the beginning of the year (2021), the only accounts that I will have at Vanguard will be either traditional IRAs or Roth IRAs; consequently, I would prefer that my settlement account be a tax-sheltered account.

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Re: Question about Vanguard RMD Service with Brokerage Accounts

Post by Eagle33 »

Dead Man Walking wrote: Sat Nov 21, 2020 9:08 pm
rkhusky wrote: Sat Nov 21, 2020 1:30 pm Actually, all transactions in brokerage accounts go through the settlement fund (the last column in the transaction history lists the settlement fund transactions). But it is automatic, you don't need to do it manually.
Is the settlement account for retirement accounts a tax-sheltered settlement account or is it a taxable settlement account?
After the beginning of the year (2021), the only accounts that I will have at Vanguard will be either traditional IRAs or Roth IRAs; consequently, I would prefer that my settlement account be a tax-sheltered account.

DMW
Each of your trad/Roth IRA accounts includes it's own settlement (sub)account and share the same tax advantages as other holdings in each of your trad/Roth IRA accounts. Basically a settlement account is MM MF that is used as the gateway for the other holdings inside each account and allows connections to your bank and other financial accounts.
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Re: Question about Vanguard RMD Service with Brokerage Accounts

Post by Miriam2 »

EyeDee wrote: Sat Nov 21, 2020 11:50 am Will Vanguard's Required Minimum Distribution Service allow one to set up automatic withdrawals from bond funds in a brokerage account without going through the settlement fund?
My understanding is that everything in a brokerage account goes through the settlement fund on its way into or out of the account. It's the doorway through which everything passes ( and it pays a little interest in passing 8-) ). Withdrawing from a bond fund and moving it to your bank account is the same as withdrawing from a bond fund and moving it to your bank account through the settlement fund doorway.
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