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Subject:  Re: RMD Question Date:  1/30/2013  1:03 PM
Author:  TwoCybers Number:  18190 of 20632

Phil wrote
Between now and 4/1/2014 based on your 12/31/2012 balance and 12/31/2013 age.

Between 1/1/2014 and 12/31/2014 bsed on your 12/31/2013 balance and 12/31/2014 age.

While you certainly can delay taking cash until the last week without penalty, there is potential "gotcha" --

Just hang some numbers - say your IRA total on 12/31/2012 is $100,000 which leads to a RMD of $3,649.63 -- Between 12/31/2012 one of two things is going to happen -- your IRA will grow or shrink. Growth is good. But should the market tank and you $100,000 drop in say $90,000 -- you would still have to remove $3,649.63 which is a significantly larger percentage of your IRA.

That is why in the case of IRAs, the idea of delaying taxes no matter what is not always such a great plan. Myself -- I tend to take the money and run. In the nice event the market goes up, I get the market increase as capital gains which have a lower tax rate than ordinary income.

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