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Here's my story -- I was taking my beneficiary RMD every year in Jan. My financial advisor said, take it in December, your money will get to grow all year. Then I forgot. The IRS forgave me, but it was a pain in the butt. And now I'm back to taking it in January.

Lisa
in MA
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Here's my story -- I was taking my beneficiary RMD every year in Jan. My financial advisor said, take it in December, your money will get to grow all year. Then I forgot. The IRS forgave me, but it was a pain in the butt. And now I'm back to taking it in January.

Well, Lisa in MA (or is it Lisa with an MA?)--can't you forget in January too? Sounds like you're in the fortunate position not to actually need that beneficiary RMD, which is at least one reason why taking it might slip your mind.

I posted earlier on the thread asking about this that I do a monthly, because the RMD provides the bulk of our living expenses. But it's also set up with the brokerage housing my IRA (Fidelity) so that it's automatic. They recalculate it at the end of the year and start the monthly distributions right up in mid=January. I've taken out some Qualified Charitable Distributions in January as well in recent years... and learned that it's a good practice to check their math when they adjust the RMDs for the remainder of the year. The first time I did it, they made a serious miscalculation that would have netted a lower than "Required" distribution.

So I rely on the automatic, but I verify {actually a very simple spreadsheet).

mathetes
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I'm not yet old enough to take RMD in my accounts, however I inherited a small IRA and I have to take RMDs on it. It is at Fidelity and they have an option on the web site to setup automatic withdrawals of the RMD they compute on any date you want in the year. And repeat each year.

It is hard to believe that no one else does this as well.

Mike
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Here's my story -- I was taking my beneficiary RMD every year in Jan. My financial advisor said, take it in December, your money will get to grow all year. Then I forgot. The IRS forgave me, but it was a pain in the butt. And now I'm back to taking it in January.

I transfer my RMD from my traditional IRA accounts to a taxable investment account during the first week of January. I have no idea what will happen to the IRA accounts during the distribution year and prefer to minimize the difference between their value on 31 December used to calculate RMD and when I transfer the RMD. I have no taxes withheld from the RMD.

I immediately invest the RMD transferred to the taxable investment account. I don't lose any potential growth that might occur during the distribution year. The RMD grows in the taxable investment account where it receives more favorable tax treatment.

Income from VA Disability Compensation, Social Security Benefits, and two small pensions provides enough money to cover living expenses and estimated income taxes that are paid quarterly.
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No. of Recommendations: 3
LisaMA,

You wrote, My financial advisor said, take it in December, your money will get to grow all year. Then I forgot. ...

I don't take RMDs yet, but I use Google Calendar. For lots of things. I'm forgetful, so have it send me reminders to do things I scheduled, weeks, months or even years in advance. The reminders are either email or text message or both. And my phone actively reminds me about them too. Multiple times if necessary. And I can defer the notification to a later date on my phone in just a few seconds if I can't get to it that day.

People used to use wall calendars for this kind of thing. Online / phone calendars are even simpler and their reminders are more in-your-face.

I don't understand why people don't use them for what they were designed for...

- Joel
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