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two questions
70 in oct of this year

what month do you have to withdraw the RMD?

separate question
can you still contribute to IRA if still working?
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in previous message I meant to say 71---as shows below

two questions
71 in oct of this year

what month do you have to withdraw the RMD?

separate question
can you still contribute to IRA if still working?
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1.) April 1st of the year following when you reach 70 1/2
This does not change the requirement to take a required distribution for that year. If the first RMD is delayed until the next year, 2 RMDs must be taken in that year.

2.) Contributions
a.) Traditional IRAs - No
Ends in the year you turn 70 1/2
b.) Roth - Yes
Providing that you have earned income and meet the income restriction.
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71 in oct of this year

what month do you have to withdraw the RMD?


The key date is the date on which you reach 70.5. I suppose that was in April 2011.

The general rule is that you have to take the RMD within each calendar year, BUT you get a special extension to April 1st (2012), since 2011 is only your first year. After the first year though, the calendar year rule kicks in. Note that it kicks in immediately, so that your 2012 RMD is also going to be due in the same year that you take your first RMD, if you wait until after December 31, 2011 to take it. So, for tax reasons, you may wish to take it before December 31, 2001. The RMD will generate income, and many people like to spread this income out, rather than having two hits in the same taxable year.

culcha
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So, for tax reasons, you may wish to take it before December 31, 20[1]1.

Stricktly before December 31, since that is a Saturday and your broker may not honor the request until January 2 2012, and that would be too late. Better get your request for the rmd Friday or maybe Thursday depending on how efficient your broker handles withdrawals.
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Stricktly before December 31, since that is a Saturday and your broker may not honor the request until January 2 2012, and that would be too late. Better get your request for the rmd Friday or maybe Thursday depending on how efficient your broker handles withdrawals.

This is too late to guarantee that an RMD will be processed. If you are cutting it this close, go to a local office to take the distribution and not try to setup a reoccuring RMD for that year.

I recently helped my SIL setup her RMD, I believe the forms stated a month was required.

Also, December isn't a great month to take an RMD. We setup her RMD to be taken evenly across 3 distributions during the year. The forms allowed monthly, annual or a selection of specific months during the year.
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I recently helped my SIL setup her RMD, I believe the forms stated a month was required.

Also, December isn't a great month to take an RMD.


why?

i'd think that letting the money stay in the account earning tax-deferred would be useful (IF you don't need the withdrawal)


=
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The forms allowed monthly, annual or a selection of specific months during the year.

Is this true for all Trustees (ie Banks, Brokerage Firms etc.)? I would assume so. Right?

Rich
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Is this true for all Trustees (ie Banks, Brokerage Firms etc.)? I would assume so. Right?

Never assume. Ask, and get the answer in writing. Also remember that you'e not required to set up an automatic distribution. You can always keep control and take your distributions when (duing the required period) and whence you choose.

As for why not wait until December? (Can't remember whether this was yours or someone else's.) I've found that life will bring you enough problems without any help from you. Why wait and create the chance that something will go wrong and there's no time to fix it?

Phil
Rule Your Retirement Home Fool
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Thanks Phil. I thought the RMD form may have been a standardized form used by all institutions. Since I am 67 I have a few years before I have to be concerned about RMD's .... but I always like to plan ahead.

As for why not wait until December? (Can't remember whether this was yours or someone else's.)

It was Not me ... I learned my lesson with last minute stock purchases ;)

Rich
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As for why not wait until December? (Can't remember whether this was yours or someone else's.) I've found that life will bring you enough problems without any help from you. Why wait and create the chance that something will go wrong and there's no time to fix it?



thanks... makes sense.

could be a big mess if something went wrong with an RMD
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why?

i'd think that letting the money stay in the account earning tax-deferred would be useful (IF you don't need the withdrawal)


By December, tax loss selling can depress the market. It is a significant risk to wait until the end of the year and hope that nothing goes wrong.
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i'd think that letting the money stay in the account earning tax-deferred would be useful (IF you don't need the withdrawal)
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By December, tax loss selling can depress the market.


i guess i'm skeptical that 'tax loss selling' will depress the market below ,say, March, during early to mid-December , BUT


It is a significant risk to wait until the end of the year and hope that nothing goes wrong.



that's a good point (same as PHil's?) ...st*** happens... wait till Dec. and there might be sickness, accident, crossed-signals at Brokerage ..etc?

which could be a real mess on the tax side
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guess i'm skeptical that 'tax loss selling' will depress the market below ,say, March, during early to mid-December , BUT

It is a significant risk to wait until the end of the year and hope that nothing goes wrong.


I am in favor of splitting the RMD across a few withdrawls through the year. If the market drops significantly, it is possible to defer the withdrawl to later in the year. For most, it is safer to have a plan in place that requires action to change rather than to implement.

that's a good point (same as PHil's?) ...st*** happens... wait till Dec.

The unexpected does happen. Just look at power failure that in Southern California, Arizona and Baja. If that had occurred on April 15th or the last trading day of the year, it would have caused problems for a lot of procasinators.
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that's a good point (same as PHil's?) ...st*** happens... wait till Dec.

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The unexpected does happen. Just look at power failure that in Southern California, Arizona and Baja. If that had occurred on April 15th or the last trading day of the year, it would have caused problems for a lot of procrastinators.



that ...and earthquakes and hurricanes...

or just a quick trip to the hospital
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