Questions tagged [rmd]

Required Minimum Distributions

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1 vote
1 answer
183 views

Successor beneficiary to inherited IRA - RMD calculation?

There are so many moving parts to this in the tax code... I keep thinking I understand it but now I'm not sure. My grandmother died in March 2017, age 93. She had been taking required distributions ...
1 vote
1 answer
489 views

What happens if Required Minimum Distributions (RMD) is not done or amount is wrong?

My wife inherited an IRA from her late mother.  At the time, wife was 66 and MIL was 88.  Another QA says RMD (for MIL) starts at 70½ but the manager of a different investment we have says it starts ...
0 votes
1 answer
105 views

Required minimum distribution (RMD) for inherited IRA—how long?

My wife inherited an IRA from her late mother.  At the time, wife was 66 and MIL was 88.  Another QA says RMD (for MIL) starts at 70½ but the manager of a different investment we have says it starts ...
1 vote
1 answer
101 views

What are the requirements for an older spouse to maintain the RMDs of a younger spouse that has deceased?

Let's say Alice is 78 and Bob is 74, so both are already taking RMDs, and are married. Bob dies, and Alice becomes the owner of Bob's IRA. According to the IRS here, Alice can continue taking Bob's ...
6 votes
1 answer
314 views

RMD, how is it withdrawn?

How is RMD (Required Minimum Distribution) withdrawn, say the 4% RMD is withdrawn from each account separately (IRA, 403B, SEP IRA, Simple IRA) or is it computed on the entire retirement accounts and ...
2 votes
2 answers
67 views

Best time to take Beneficiary IRAs Required Minimum Distribution for reinvestment?

I have a Beneficiary IRA and have been reinvesting the RMD from it each year by putting it in a Roth IRA of my own. My understand is I can take the withdrawal any time during a calendar year and have ...
2 votes
1 answer
66 views

Two IRAs and RMDs

An investor, who is over 75, has two different IRAs. If the first IRA has an RMD of $4000 and the second IRA has an RMD of $6000, can he satisfy both RMDs by taking out $10,000 from the first IRA? I ...
1 vote
1 answer
109 views

do the covid-based rules affect when you inherit an IRA?

Given that a traditional IRA owner that died in 2019 (at 95) and had multiple beneficiaries (all people), normally the rules states that the inherited IRA would have to be inherited by all of the ...
3 votes
2 answers
136 views

Does a rollover from RMD to Roth get taxed twice?

I am 79 years old, and this year might roll over money from a traditional IRA into a Roth account. I have not done this before. Will I get taxed twice on the money, once for taking it out of the ...
4 votes
1 answer
786 views

Required Minimum Distribution Tax Rates

As I understand it, if one sells Apple Stock in a 401K and takes the cash proceeds as RMD, then it is taxed as ordinary income and not capital gains. If instead the stock was not sold and taken out of ...
1 vote
0 answers
52 views

Stopping erroneous IRS collection

We (my wife and I) had a Required Minimum Distribution Issue (RMD) that was supposedly resolved. We have a letter from the IRS stating that the waiver was granted and that we owe NOTHING for the tax ...
4 votes
1 answer
261 views

RMD Penalty Waiver

We accidentally neglected to take the RMD from one of our two 403b retirement accounts. As soon as we realized this, we had an accountant help us fill out a 5329 form for each tax year. He advised us ...
1 vote
1 answer
89 views

How much of an RMD from an inherited IRA with basis is taxable?

My wife received an inherited IRA last year, so took an RMD (required minimum distribution) last year (still under the pre Secure Act rules, thought that doesn't really matter). We got a 1099R for ...
8 votes
1 answer
195 views

Do I have to take an RMD from my IRA next year?

I turned 70.5 last year and was required to take my required minimum distribution. I took it, but the laws changed at the end of last year making the new age for RMD at 72. Do I have to take the ...
2 votes
3 answers
198 views

Possibly better to pay RMD penalties than to take RMDs?

Could it ever be advantageous for a wealthy retired person over the age of 70-1/2 with significant taxable investment income to intentionally fail to take a Required Minimum Distribution (RMD) from an ...
27 votes
5 answers
11k views

Why do baby boomers have to sell 5% of their retirement accounts by the end of the year?

This article on Marketwatch quotes Raoul Pal of Goldman Sachs claiming that baby boomers have to sell 5% of their retirement accounts by the end of the year. Here is the specific passage: Pal says ...
1 vote
0 answers
59 views

RMD after annuitizing an annuity in a traditional IRA

I live in the United States and I have an annuity that hasn't been annuitized in a traditional IRA account (IRA A). I need to take a required minimum distribution (RMD) of $8K this year for IRA A. I ...
5 votes
1 answer
197 views

Is a RMD required from a 401(k) if one is over 70 1/2 and still working full time and contributing to the 401K each week?

Is an RMD required from a 401(k) if one is over 70 1/2 and still working full time and contributing to the 401(k) each week? If so, can it be done online from the 401(k) site?
12 votes
3 answers
832 views

Impact of RMD on credit worthiness

I was surprised after I retired when I could not get an increase in the credit limit on a credit card I'd held in good standing for many years. After I retired, the only income that qualified for a ...
8 votes
1 answer
8k views

How to calculate mandatory withdrawals for 401k? (Required Minimum Distribution)

I understand that 401(k)s have a mandatory withdrawal that can be triggered at some point. What triggers a 401(k) mandatory withdrawal, and how is the amount of the withdrawal calculated?
3 votes
2 answers
166 views

Where on tax return to deduct IRA distributions made directly to charity?

Where on the Federal tax return does one subtract RMD (qualified money) distributions that have gone directly to a qualified charity; the 1099-R form reports the sum of ALL distributions, i.e. regular ...
7 votes
2 answers
345 views

Beneficiary IRAs and Required Minimum Distributions

If you receive a (non-spousal) Beneficiary-traditional IRA as a beneficiary due to death, is there a way to avoid taking a Required Minimum Distribution until your own retirement age? Or are you ...