Opinion's: Best time to withdraw RMD's when required to do so.

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Billyboy
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Opinion's: Best time to withdraw RMD's when required to do so.

Post by Billyboy » Wed Sep 12, 2018 1:17 am

Opinions wanted please. At the beginning of 2018 I had to withdraw my RMD's by Dec. 31, 2018 in the amount of $96,358.63. To date, I've taken withdrawals of $24,121.94. I have the remainder of $72,236.69 still to be withdrawn. I'd appreciate all those that might see this post to kindly give me their answer as to what they do or probably will do when they reach the age in which they are required to take RMD withdrawals along the reasons why they feel as they do about it. I've reached the age of almost 75. Thank you.

I received a reply to convert my RMD's into a ROTH, a little bit at a time in order not to get into a higher tax bracket
Question: Without any earned income, how can I convert my RMD's into a ROTH?
Last edited by Billyboy on Thu Oct 04, 2018 1:22 am, edited 1 time in total.

mhalley
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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by mhalley » Wed Sep 12, 2018 3:12 am

It doesn't matter that much, but what I plan to do in six years us to take my rmds in late November. At that point I wiill have a good idea of my tax burden and will withhold taxes accordingly, allowing me to skip estimated tax payments. It will also allow money to compound tax free longer. Plus I still have a month to ensure that all goes well.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by dratkinson » Wed Sep 12, 2018 3:22 am

Not my situation, but....

If you don't need the RMDs to live on, have seen others suggest taking the RMD for this year (the requirement), and then convert some an additional amount (but not enough to enter next tax bracket) into a Roth IRA. The idea being that the conversion will lessen your 31 Dec tax-deferred balance (401k, IRA,...), so your next RMD will be also be less.

Lather, rinse, repeat until your tax-deferred balance is completely converted.

Since the conversion each year is converting future tax-deferred investment growth into future tax-free investment growth, the earlier in the year the conversion happens, the better.


Edit. Clarity.
Last edited by dratkinson on Thu Oct 04, 2018 7:10 pm, edited 1 time in total.
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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by jclear » Wed Sep 12, 2018 3:50 am

When I get to RMD, I expect to be worried about having things done properly, even if I’m hospitalized or whatever. So I plan to complete the RMD in the first half of the year, and then late in the year make any other distribution or Roth conversion in an amount to perfect my taxes.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by Ron Scott » Wed Sep 12, 2018 3:57 am

mhalley wrote:
Wed Sep 12, 2018 3:12 am
It doesn't matter that much, but what I plan to do in six years us to take my rmds in late November. At that point I wiill have a good idea of my tax burden and will withhold taxes accordingly, allowing me to skip estimated tax payments. It will also allow money to compound tax free longer. Plus I still have a month to ensure that all goes well.
Agree completely and for the reasons stated. Thanksgiving works.
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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by furwut » Wed Sep 12, 2018 4:18 am

The penalty for under withdrawal is severe. I suggest enrolling in a RMD service with your provider.

I have an inherited IRA for which I must take a RMD. The amount is small so I have the service distribute it annually in December.

But once I begin taking RMDs from my own accounts and, needing the money for current expenses, I will set it up for monthly disbursements to my checking account.

If you don’t need some or all of the money immediately you can reinvest it in a taxable account.

It’s not discussed enough in these forums but there is value in keeping our financial arrangements simple - especially as we reach certain ages.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by TwstdSista » Wed Sep 12, 2018 4:23 am

I've always thought I'd take them early in the year, just to make things easier for my heirs should I pass. (I'd hate to create a mess by dying in late November and them not even having the time to figure out my RMDs before the year ends. I like them too much!)

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by furwut » Wed Sep 12, 2018 4:28 am

Taxes. I pay estimated taxes based on the previous year under safe harbor rules.

Unless there is a sudden spike in income you shouldn’t face a surprise come April.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by Steelersfan » Wed Sep 12, 2018 5:36 am

This thread has a lot of discussion about when people take RMD's.

viewtopic.php?f=1&t=256848

Ron Scott
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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by Ron Scott » Wed Sep 12, 2018 6:47 am

furwut wrote:
Wed Sep 12, 2018 4:18 am
But once I begin taking RMDs from my own accounts and, needing the money for current expenses, I will set it up for monthly disbursements to my checking account.

If you don’t need some or all of the money immediately you can reinvest it in a taxable account.
To amplify, cashing out RMDs or reinvesting them into a different vehicle is fine, but you can also often keep the same investment, transfer it to a taxable account and pay your taxes. Holders of old 30 bonds still paying 7% might not want to sell outright..
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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by RadAudit » Wed Sep 12, 2018 7:25 am

I was looking over a prior post in the thread linked above.

Upon reflection, what I really do is I take the RMD in Dec. That's on automatic via VG. From that RMD, federal taxes are withheld for that year. The remainder of the RMD is transferred to a MM in a taxable account. In early Jan, I compare the amount in the MM with the SWR / budget for the coming year and adjust the portfolio asset allocation to suit - either invest the difference or withdraw from assets in the taxable account and / or rearrange assets inside the IRA.

State taxes are withheld monthly from a small pension.

Additional living expenses are withdrawn from the MM on an as needed basis throughout the year. And minor adds / subtracts are made after tax filing, if needed or I get around to it.


Why? This is all probably a big rationalization. The ballet of the books isn't that complicated, really. So, no great strain there. The whole process of calculating money moves and realigning the asset allocation can be done in a half hour. (And, I'm not that good at pushing numbers around a page.) Essentially, living off SS and a small pension is just mental gymnastics that helps us maintain a moderate lifestyle. Also, I believe that in up markets, taking RMDs in Dec. allows the money to work a little longer. And, finally, the US can wait on the getting the tax money, AFAIC.
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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by midareff » Wed Sep 12, 2018 7:31 am

I simply withdraw (automatically) 1/12 of the required RMD monthly in the form of a transfer from VG to bank. It's just another source of income besides SS, pension, Roth, dividends from taxable and so forth.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by carolinaman » Wed Sep 12, 2018 7:48 am

I do late in the calendar year when my tax situation is more clear. This way I can withhold proper amount to avoid under withholding penalties by IRS.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by The Wizard » Wed Sep 12, 2018 8:45 am

I've been withdrawing $3000/month from tax-deferred since I retired at age 63. This is instead of SS as I delay that until age 70.

I turn 70-1/2 in 2020 and will adjust that $3000/month to just cover my RMD, probably a lesser amount depending on what Mr. Market does.

In a twist on fungibility, I plan to live on my RMDs and reinvest my SS...
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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by The Wizard » Wed Sep 12, 2018 8:46 am

midareff wrote:
Wed Sep 12, 2018 7:31 am
I simply withdraw (automatically) 1/12 of the required RMD monthly in the form of a transfer from VG to bank. It's just another source of income besides SS, pension, Roth, dividends from taxable and so forth.
This sounds like a really excellent way to do it...
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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by ruralavalon » Wed Sep 12, 2018 8:50 am

Billyboy wrote:
Wed Sep 12, 2018 1:17 am
Opinions wanted please. At the beginning of 2018 I had to withdraw my RMD's by Dec. 31, 2018 in the amount of $96,358.63. To date, I've taken withdrawals of $24,121.94. I have the remainder of $72,236.69 still to be withdrawn. I'd appreciate all those that might see this post to kindly give me their answer as to what they do or probably will do when they reach the age in which they are required to take RMD withdrawals along the reasons why they feel as they do about it. I've reached the age of almost 75. Thank you.
Age 73, no pension. We take my Required Minimum Distribution monthly, automatically transferred to our joint checking account. The RMDs plus Social Security in total are a little more than our monthly living expenses, so that works nicely for us.
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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by Dottie57 » Wed Sep 12, 2018 9:12 am

TwstdSista wrote:
Wed Sep 12, 2018 4:23 am
I've always thought I'd take them early in the year, just to make things easier for my heirs should I pass. (I'd hate to create a mess by dying in late November and them not even having the time to figure out my RMDs before the year ends. I like them too much!)
Very good idea!

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by Watty » Wed Sep 12, 2018 9:30 am

There is no consensus but to me there are a lot of downsides to not taking it as one distribution early in the year;

1) If you do not take the RMD in the year you die it can be a hassle for your heirs to take the RMD and if they are are not financially savvy they may not even realise that they have to take the RMD.

2) If you have been taking a monthly distribution it may be confusing for your heirs to figure out how much of the RMD you had taken when you died. I would take it all at one time.

3) If you wait until late in the year there is also a chance that the RMD will not actually happen since you might be in a hospital or traveling, or just forget to do it especially when you are older. Even if you have it set up to automatically be done there can be snafus with that, like if you do not have enough money in your core money market account for the RMD. If there is a problem early in the year there is lots of time to get any snafus fixed.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by mpnret » Wed Sep 12, 2018 10:34 am

I do one RMD late in the year with my entire tax due deducted from that. That way your money remains invested tax defered for the year plus you only make the one tax payment (deducted from RMD) at the end of the year. No estimated tax payments throughout the year or tax deducted from other income. Why pay tax earlier than you have to. For those who fear dying or other disasters before the end of the year set up the RMD in the beginning of the year to be paid in December. Also it doesn't take long to prepare a document for your heirs explaining what needs to be done.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by Lynette » Wed Sep 12, 2018 10:39 am

Dottie57 wrote:
Wed Sep 12, 2018 9:12 am
TwstdSista wrote:
Wed Sep 12, 2018 4:23 am
I've always thought I'd take them early in the year, just to make things easier for my heirs should I pass. (I'd hate to create a mess by dying in late November and them not even having the time to figure out my RMDs before the year ends. I like them too much!)
Very good idea!
I do QCDs early in the year. Once that is settled, I take the remaining RMDs so I'm done by February. I have taxes withheld from the RMD, and separately from two pensions and SS.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by Gill » Wed Sep 12, 2018 10:47 am

TwstdSista wrote:
Wed Sep 12, 2018 4:23 am
I've always thought I'd take them early in the year, just to make things easier for my heirs should I pass. (I'd hate to create a mess by dying in late November and them not even having the time to figure out my RMDs before the year ends. I like them too much!)
I switched to taking 100% in early January for this same reason.
Gill

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by sport » Wed Sep 12, 2018 10:48 am

I want to be able to make QCDs throughout the year as some of them are not planned in advance. So, I make those QCDs and then withdraw the balance of the RMD late in the year. I have enough income tax withheld to meet the safe harbor rules at that time. QCDs are a wonderful tax break, and should not be ignored if you donate to qualified charities.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by Oak&Elm » Wed Sep 12, 2018 11:50 am

I've always thought I'd take them early in the year, just to make things easier for my heirs should I pass. (I'd hate to create a mess by dying in late November and them not even having the time to figure out my RMDs before the year ends. I like them too much!)
Planning to change my RMD date to January 10th for next year. Good reasoning

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by Billyboy » Wed Oct 03, 2018 11:41 pm

dratkinson wrote:
Wed Sep 12, 2018 3:22 am
Not my situation, but....

If you don't need the RMDs to live on, have seen others suggest taking the RMD for this year (the requirement), and then convert some (but not enough to enter next tax bracket) into a Roth IRA. The idea being that the conversion will lessen your 31 Dec tax-deferred balance (401k, IRA,...), so your next RMD will be also be less.

Lather, rinse, repeat until your tax-deferred balance is completely converted.

Since the conversion each year is converting future tax-deferred investment growth into future tax-free investment growth, the earlier in the year the conversion happens, the better.
:?:
With no earned income as such, how can I convert any of my RMD distributions, or any other of my investments for that matter, to a Roth IRA? :confused
Too lazy to check for the details, but hope someone will answer anyway.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by jclear » Thu Oct 04, 2018 1:17 am

Billyboy wrote:
Wed Oct 03, 2018 11:41 pm
dratkinson wrote:
Wed Sep 12, 2018 3:22 am
Not my situation, but....

If you don't need the RMDs to live on, have seen others suggest taking the RMD for this year (the requirement), and then convert some (but not enough to enter next tax bracket) into a Roth IRA. The idea being that the conversion will lessen your 31 Dec tax-deferred balance (401k, IRA,...), so your next RMD will be also be less.

Lather, rinse, repeat until your tax-deferred balance is completely converted.

Since the conversion each year is converting future tax-deferred investment growth into future tax-free investment growth, the earlier in the year the conversion happens, the better.
:?:
With no earned income as such, how can I convert any of my RMD distributions, or any other of my investments for that matter, to a Roth IRA? :confused
Too lazy to check for the details, but hope someone will answer anyway.
You can’t. But you can take your RMD for this year, and then after that convert however much more you want from the tIRA to a Roth. You’ll pay taxes of course, but will reduce the tIRA balance to keep the RMDs from getting worse. Perhaps convert so you get up to the top of your tax bracket, or up to safely below one of the IRMAA cliffs. You should also consider the tax brackets of your heirs. If they will be lower than yours (eg charity at 0%), then you risk paying more taxes than necessary by doing conversions.
Ideally, you would have done Roth conversions in your 60’s in anticipation of this - if that would have helped. If that wouldn’t have helped, well, the government has to eat too.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by Retired2013 » Thu Oct 04, 2018 8:40 am

[/quote]
:?:
With no earned income as such, how can I convert any of my RMD distributions, or any other of my investments for that matter, to a Roth IRA? :confused
Too lazy to check for the details, but hope someone will answer anyway.
[/quote]

Link to Vanguard information https://investor.vanguard.com/ira/how-t ... o-roth-ira

The earned income only applies to current year contributions. You can do a conversion for any amount in any year.

You still need to take your RMD for the year. Then you can convert any remaining amount from your 401(k), tIRA or any deferred account that you currently have. If the deferred amount is in your 401(k), 403, you might have to do a rollover first. However, whatever amount you convert, the converted amount will be added to your current RMD amount and other taxable income for that year, making a larger tax bill. Once the funds are converted, you have lowered your next year RMD and no RMD on the ROTH conversion account.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by JW-Retired » Thu Oct 04, 2018 9:06 am

Billyboy wrote:
Wed Sep 12, 2018 1:17 am
I received a reply to convert my RMD's into a ROTH, a little bit at a time in order not to get into a higher tax bracket
Question: Without any earned income, how can I convert my RMD's into a ROTH?
As retired2013 said, RMDs cannot be conversions, and you cannot make Roth contributions without earned income. However, after you have done your RMDs for the year you can then convert more of your tIRA money to a Roth. And pay more tax on it of course.
JW
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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by ruralavalon » Thu Oct 04, 2018 9:19 am

You cannot make regular Roth IRA contributions without any earned income.

You can convert from a traditional IRA to a Roth IRA, regardless of earned income.
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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by kaneohe » Thu Oct 04, 2018 1:23 pm

ruralavalon wrote:
Thu Oct 04, 2018 9:19 am
You cannot make regular Roth IRA contributions without any earned income.

You can convert from a traditional IRA to a Roth IRA, regardless of earned income.
to make this more complete: as others have noted you cannot convert the RMDs from TIRAs.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by btenny » Thu Oct 04, 2018 1:48 pm

I did several QCDs to selected charities in june. Then I took the rest of the rmds in july. Had a lot of taxes deducted from the rmds, both irs and state. Was 70.5 in March and did taxes then as well so wanted to make sure that was done before doing rmds. Did not want to wait till December and be pressed for time. Probably will do the same next year.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by OhioGozaimas » Thu Oct 04, 2018 3:08 pm

Re: VG vs. Fido Automated RMDs

Typically, I have been taking distribution of my total RMD from VG in the fourth quarter of the year.

As others have noted above, I agree that there can be advantages to taking RMDs earlier in the year, or throughout the year. Setting up something automatic early in the year would be another step toward simplifying things!

However, regarding VG’s Automated Distributions, here is my interpretation of their program:
> The RMD can only come from the brokerage settlement fund.
> The distribution amount can only be up to 100% of the VG calculated RMD (not the higher combined RMDs of all IRAs).
Payments are 1x, 2x, 4x, 12x per year.
(Fwiw, VG won’t withhold for Ohio taxes.)

By comparison, I believe the Fido Automated RMD program offers:
> The RMD can come from any fund(s).
> Fido permits specifying an Additional Distribution Amount (which can be changed from year-to-year).
Payments are 1x, 4x, 12x per year.
(Fwiw, Fido does permit Ohio withholding.)

Are my interpretations above correct? If so, this would seem to give Fido’s system a pretty good edge...?

Thanks for your thoughts!
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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by ruralavalon » Thu Oct 04, 2018 3:28 pm

OhioGozaimas wrote:
Thu Oct 04, 2018 3:08 pm
Re: VG vs. Fido Automated RMDs

Typically, I have been taking distribution of my total RMD from VG in the fourth quarter of the year.

As others have noted above, I agree that there can be advantages to taking RMDs earlier in the year, or throughout the year. Setting up something automatic early in the year would be another step toward simplifying things!

However, regarding VG’s Automated Distributions, here is my interpretation of their program:
> The RMD can only come from the brokerage settlement fund.
> The distribution amount can only be up to 100% of the VG calculated RMD (not the higher combined RMDs of all IRAs).
Payments are 1x, 2x, 4x, 12x per year.
(Fwiw, VG won’t withhold for Ohio taxes.)

By comparison, I believe the Fido Automated RMD program offers:
> The RMD can come from any fund(s).
> Fido permits specifying an Additional Distribution Amount (which can be changed from year-to-year).
Payments are 1x, 4x, 12x per year.
(Fwiw, Fido does permit Ohio withholding.)

Are my interpretations above correct? If so, this would seem to give Fido’s system a pretty good edge...?

Thanks for your thoughts!
At Vanguard the Required Minimum Distributions can come from any fund, any combination of funds, or all funds in the traditional account.

I take the Required Minimum Distributions monthly from each fund in my rollover IRA, proportionally. I have 10% withheld for taxes.

They will withhold any percentage for taxes that I specifically, 10% or higher.
Last edited by ruralavalon on Thu Oct 04, 2018 3:33 pm, edited 2 times in total.
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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by pkcrafter » Thu Oct 04, 2018 3:31 pm

Is anyone taking the RMD and then requesting a certain amount be withheld for taxes?

Paul
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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by sport » Thu Oct 04, 2018 3:40 pm

pkcrafter wrote:
Thu Oct 04, 2018 3:31 pm
Is anyone taking the RMD and then requesting a certain amount be withheld for taxes?

Paul
I make my QCDs throughout the year, and then take the balance of the RMD sometime in November. I have federal taxes withheld from the November withdrawal. If you request withholding after the RMD is complete, the withholding is an additional taxable withdrawal. I also note that Vanguard will not withhold income taxes for Ohio, despite my complaints about that policy. :annoyed

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by OhioGozaimas » Thu Oct 04, 2018 3:59 pm

ruralavalon:

When I do my usual VG on-demand RMD distribution, I can designate any source fund.

However, today when I click on VG's "Set up RMD automatic distribution" screen:

Step 2 of 3: Choose the holdings for your distribution

I get this caption: "You have accounts that aren't eligible for RMD automatic distributions."
View Details: "Your distributions can only be taken from Vanguard Brokerage Accounts."

???

Thanks!
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OhioGozaimas
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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by OhioGozaimas » Thu Oct 04, 2018 4:07 pm

pkcrafter:

Yes, I have had federal withholding taken out of my RMD distributions for several years now, in lieu of quarterly estimated payments.

I have already figured the safe-harbor federal tax withholding needed from this year's distribution.

Best wishes.
Map out your future – but do it in pencil. – Jon Bon Jovi

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by jdb » Thu Oct 04, 2018 4:50 pm

sport wrote:
Wed Sep 12, 2018 10:48 am
I want to be able to make QCDs throughout the year as some of them are not planned in advance. So, I make those QCDs and then withdraw the balance of the RMD late in the year. I have enough income tax withheld to meet the safe harbor rules at that time. QCDs are a wonderful tax break, and should not be ignored if you donate to qualified charities.
+1. If you don’t need the RMD for income and don’t want to pay tax on it then QCDs are the wonderful answer. I have RMD approximately equivalent to OP. Enjoying the donations to charities, mostly local, so much that plan to make more QCD’s than my RMD to the max $100K. And starting in January will rinse and repeat. Next week having dinner at our house with the CEO of one of the very grateful local charities. A nice feeling. Good luck.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by celia » Thu Oct 04, 2018 8:18 pm

If OP is married, she/he needs to consider what happens when one of them dies. The survivor will have to continue RMDs or QCDs but file taxes as Single. The room in each tax bracket for Singles is half of what it is for MFJ. So there is a good chance the tax bracket for the survivor will increase.

That said, if OP doesn't need the RMDs for living expenses, he/she can give up to $100k of the RMD to charity using a Qualified Charitable Distribution (QCD) instead. (Look up the rules, especially that the check that is written must be made to the charity instead of to the OP.). If the rules are followed, neither OP nor the Charity will have to pay taxes on this distribution. After the RMD is satisfied, there will be a lot of room in the OP's current tax bracket, to do Roth conversions.

It is recommended that the asset that is expected to grow the fastest be the one converted or withdrawn to taxable to slow down the growth in the IRA.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by The Wizard » Thu Oct 04, 2018 8:48 pm

To answer the OP, the best time to take RMDs is on the 20th of each month, in equal amounts.

And generally, once you start RMDs and SS, it's probably good to stop doing any more Roth conversions...
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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by The Wizard » Thu Oct 04, 2018 8:53 pm

celia wrote:
Thu Oct 04, 2018 8:18 pm
...It is recommended that the asset that is expected to grow the fastest be the one converted or withdrawn to taxable to slow down the growth in the IRA.
I don't agree.
Growth in your tIRA is good, within the limits of your risk tolerance and AA.
You could minimize growth (and future taxes) in your IRA by putting it all in a MM fund but that would be taking your eye off the ball...
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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by GerryL » Thu Oct 04, 2018 9:07 pm

I will turn 70.5 early next year. Plan is to execute QCDs in the first half of the year. In the second half of the year I will take the rest of the RMD and have federal and state taxes withheld. One goal of this plan is to eliminate the need to file estimated taxes throughout the year.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by celia » Thu Oct 04, 2018 9:28 pm

The Wizard wrote:
Thu Oct 04, 2018 8:53 pm
celia wrote:
Thu Oct 04, 2018 8:18 pm
...It is recommended that the asset that is expected to grow the fastest be the one converted or withdrawn to taxable to slow down the growth in the IRA.
I don't agree.
Growth in your tIRA is good, within the limits of your risk tolerance and AA.
If you're able to keep your asset allocation the same (not needed for spending, so distribute an asset in-kind), the total portfolio value will be the same regardless of placement. Therefore, you should keep slower-growing assets in TIRA to minimize future RMDs and taxes.

Also see Tax-efficient Fund Placement.

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Re: Opinion's: Best time to withdraw RMD's when required to do so.

Post by Charlieville » Thu Oct 04, 2018 10:18 pm

TwstdSista wrote:
Wed Sep 12, 2018 4:23 am
I've always thought I'd take them early in the year, just to make things easier for my heirs should I pass. (I'd hate to create a mess by dying in late November and them not even having the time to figure out my RMDs before the year ends. I like them too much!)
This happened when my mom recently passed. She took RMDs in early December. What a pain trying to figure out what to do with little or no time to do it.

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