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My MIL is stewing because she thinks that because there was no RMD last year that she has to double up and do two RMD's this year. I don't think so, but since everyone here is better informed and smarter (but not as good looking) than I am, I would appreciate a definitive answer for her.

Help, please?

CNC
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No, she does not have to double up. But her RMD this year is likely to be larger than it wss last year. Two reasons: 1. She is a bit older resulting in a smaller life expectancy in the calculation.

2. A big dip in the stock market in December 2019 gave most of us a low portfolio value and a smaller than usual RMD.

And another one is that stocks have done well this year boosting the RMD.
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No, it'll be RMD as usual for 2021.

Another factor that will likely slightly increase the size of her RMD for 2021 is because her TIRA was not reduced by the amount of the 2020 RMD assuming she did not make an elective withdrawal of the RMD amount, which it sounds like she didn't

BruceM
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We just received DH's RMD's. It was calculated by the financial institutions (It also matches our calculations) and it was just one years worth. As mentioned this year was slightly higher than 2019 because stocks were up and we also had more invested since there was no distribution last year.

Can your MIL contact the institutions to have them calculate the amount for her?

Utahtea
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Nope.

This calendar year you take your regular size RMD. Likely larger since the market was good last year and balance on Dec 31 was up.

This year, if things continue, will see an even bigger amount required next year....plus of course, each year you live the RMD inches up a bit .......

I've been taking RMDs (skipped last year) for five years now..... it keeps growing. And growing. Not complaining.

The RMD, SS, and a teeny weeny pension give me all the money I need to live comfortably. My other investment income is money I try to figure out how to spend...and should be spending but I'm too LBYM and not going on foreign trips (seen enough already) to blow thousands of bucks.



t.
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Can your MIL contact the institutions to have them calculate the amount for her?

Utahtea


Yes, Chas. Schwab gave her the amount. She has already done the withdrawal. Including with holding 40% for tax. She is soooo annoying. Won't listen to her (brilliant genius) son-in-law. She wants to do what her deceased husband did, but he spent several hours a day poring over the WSJ and managing their portfolio ... she can't do that. I want to get her into an index fund, and Schwab has several to choose from. Wish me luck. Actually they already had one Schwab ETF, so I hope she will allow transitioning to an all ETF portfolio. If she decides to sell the house it may get complicated.

CNC
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Yes, Chas. Schwab gave her the amount. She has already done the withdrawal. Including with holding 40% for tax. She is soooo annoying. Won't listen to her (brilliant genius) son-in-law. She wants to do what her deceased husband did, but he spent several hours a day poring over the WSJ and managing their portfolio ... she can't do that. I want to get her into an index fund, and Schwab has several to choose from. Wish me luck. Actually they already had one Schwab ETF, so I hope she will allow transitioning to an all ETF portfolio. If she decides to sell the house it may get complicated.

CNC


Good Luck! There is no way DH or I are going to spend hours every day managing our funds. We have Schwab too and they have an "Intelligent Portfolio" that we have been really pleased with. We started with the IP when it first launched after our VP mentioned it to us. She was so impressed with how ours was doing that she got into it to!!!! They have it set up so you can manage your risk factor and after DH turned 70 we did adjust it. We do have other investments but this is where we've been investing recently.

Utahtea
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