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Old 01-17-2015, 03:06 PM
 
29,809 posts, read 34,894,042 times
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Quote:
Originally Posted by Goin' Coastal View Post
That is correct, but you said it was a rather SMALL amount. I wouldn't worry too much about a small amount keeping up with inflation.
This will be an ongoing process and with compounding and time a small amount will grow and grow
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Old 01-17-2015, 03:15 PM
 
Location: Southern California
372 posts, read 448,959 times
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Quote:
Originally Posted by TuborgP View Post
This will be an ongoing process and with compounding and time a small amount will grow and grow
Yes, I understand that, too.

I keep reading and rereading what OP posted, and I didn't see anything about the ongoing nature of this IRA withdrawal. I see one required distribution which OP considers putting into a deferred annuity since the money is not needed now, but is hesitating since OP doesn't know when the money will be needed.

So the simplest answer for me was just to put the small amount into an after-tax savings account.

If it were a recurring amount, had the OP mentioned this being the first of his/her RMDs, and if the OP would never need any of the RMDs, then I may have had a different answer--depending on the amount, and OP's tax situation, etc.
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Old 01-17-2015, 03:35 PM
 
Location: SW US
2,223 posts, read 2,039,757 times
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I thought it was known that you have to take distributions from the IRA every year till it's gone.
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Old 01-17-2015, 03:52 PM
 
29,809 posts, read 34,894,042 times
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Quote:
Originally Posted by Goin' Coastal View Post
Yes, I understand that, too.

I keep reading and rereading what OP posted, and I didn't see anything about the ongoing nature of this IRA withdrawal. I see one required distribution which OP considers putting into a deferred annuity since the money is not needed now, but is hesitating since OP doesn't know when the money will be needed.

So the simplest answer for me was just to put the small amount into an after-tax savings account.

If it were a recurring amount, had the OP mentioned this being the first of his/her RMDs, and if the OP would never need any of the RMDs, then I may have had a different answer--depending on the amount, and OP's tax situation, etc.
My reaction was based on us soon being in a similar and ongoing situation. It can happen very easily when at least one spouse defers SS to 70 and having pensions
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Old 01-17-2015, 04:00 PM
 
Location: Proxima Centauri
4,828 posts, read 1,994,666 times
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Quote:
Originally Posted by Windwalker2 View Post
So, after decades of saving, now I have to withdraw money that I don't need from my IRA . It's a rather small amount. My plan is to continue to save so that I can afford decent care when I need it.
Would appreciate thoughts on what to do with the money I have to withdraw. A deferred annuity maybe, except I don't know when I might need the money.
Two questions:
1. Do you have earned income last year?
2. Can you pay your taxes and roll the money into a Roth IRA?
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Old 01-17-2015, 04:04 PM
 
Location: SW US
2,223 posts, read 2,039,757 times
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No, I have been retired for years.
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Old 01-17-2015, 05:19 PM
 
29,809 posts, read 34,894,042 times
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Quote:
Originally Posted by Windwalker2 View Post
No, I have been retired for years.
My guess is you have pensions and SS that exceed your spending
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Old 01-17-2015, 07:00 PM
 
Location: SW US
2,223 posts, read 2,039,757 times
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It's more that I have lived very frugally since becoming disabled 20 years ago.
The IRA required distributions seem too low to me to create any kind of mirror for at least the initial years. I have some concerns about being able to effectively manage a stock account when I get older. But I can't see putting it into a bank and earning less than inflation. No kids, and my money doesn't need to survive me, but I do want to be able to have decent care when I need it.
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Old 01-17-2015, 07:30 PM
 
Location: Florida
5,270 posts, read 3,030,249 times
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I just moved it from the IRA to an Index mutual fund a little at a time. It is still in that fund and has grown steadily.

I keep it not as a rainy day fund but as a hurricane fund.
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Old 01-19-2015, 01:35 PM
 
Location: Columbia SC
9,002 posts, read 7,766,040 times
Reputation: 12231
We have had to take RMD's for the last several years. We do not need the money so we simply reinvest it. For a year or two we put it back in the same Fidelity Funds it was in before (just not IRA's anymore). Last few we have been sending it to Vanguard Wellington Fund.
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