Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0

if you didn't know ..if Mom was into RMDs, you'll have to do RMDs


=
....confused the heck out of me


Mom was 80, so she was into RMDs. And she also discovered that she didn't have to take one in 2009, which she didn't.
I've checked with 2 reliable sources. We have 3 options available to us.
1) take it all out at once and pay taxes on it
2) take an even distribution over a 5 year period (also pay taxes)
3) do an inherited IRA and take a minimum distribution based on my(our) life expecntancy at the time she turned 70.

With the inherited, the RMD is not much at all. We can take the RMD over the next 20, 30 years or so years. However, if we would happen to need some extra money in year 3, we can take more than the minimum out.

I was confused too. And am still confused.

Crocket
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.