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|Subject: Re: RMD, Wrap Fees, and Taxes||Date: 5/4/2013 5:20 PM|
|Author: MCCrockett||Number: 18374 of 19665|
You don't incur an income tax if you simply change custodians of the account, i.e. by shifting to Vanguard. (Or Schwab, or any other low-cost provider.)
I realize that were I to liquidate all my stocks and bonds in my IRA accounts that I could transfer the funds to Vanguard without incurring a tax liability. However, moving my IRA accounts doesn't change the tax liability that results from the IRS' Required Minimum Distribution.
At age 70 when RMD starts, the withdrawals will double my retirement income. I will move back to my pre-retirement tax rates. My question was more about whether to pay the fees directly and reduce taxable income or to pay the fees from the account reducing the RMD amount.
Vanguard costs average far less than 1%. What are you paying now?
I'm paying about 1%.
Take the time to educate yourself. You seem to lack some of the basic information you need. Not trying to insult you, but this fact screams from what you say.
I don't feel insulted. My retirement saving approach was dictated by the nature of my job. I have much to learn about investing and how to invest the RMD withdrawals.
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