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not recently , but many years ago i did and i was amazed how cheap in comparison to the pay out . . insurance is even cheaper today . there was a few hundred k left over .
Did you price it for a 70 year old, or for your age at that time?
It just seems like it couldn't be too cheap. The purchaser is already 70. But I don't know, that's just what I think.
Thank you, this is something new for me. I need to go read the link.
Edit to add that you can use the joint survivor expectancy is your spouse is 10 years younger, otherwise use the single life expectancy. Since my husband is not 10 years older, I can't use that table, where am I missing?
What you might be missing is that they need the combined RMD. You and spouse as a total. Although I think you could report individual but it is probably a better idea to do a combination. I am not sure which is better to draw from the smaller ones first or larger. It might depend on which one is doing better. Also it probably is a good idea to combine as many as you can in the best performing ones but that means you may have locked in losses but sometimes it is better to do that then keep losing if that is what is happening.
What you might be missing is that they need the combined RMD. You and spouse as a total. Although I think you could report individual but it is probably a better idea to do a combination. I am not sure which is better to draw from the smaller ones first or larger. It might depend on which one is doing better. Also it probably is a good idea to combine as many as you can in the best performing ones but that means you may have locked in losses but sometimes it is better to do that then keep losing if that is what is happening.
Yeah, I did correct on subsequent post. But I'm wondering if it is on the combined IRA? I don't believe it should be. Since I have my own IRA. How does Fidelity and Vanguard know what method we use? It's not clear in the IRS website.
This is a very small and to the point posting on the net that everyone here should know. It has been spoken of and I have said it myself a few times here as well and to my friends. This is what it says.
RMDs: The Devil in the Details
Keep in mind:
2. Those who turned 70 ½ in 2015 must report a RMD before April 1, 2016 – unless they turned that age in the first half of the year. If that’s the case, the first RMD report must be made before December 31st of this year.
This is incorrect. A person's first report is never due by 12/31 of any year. Here are couple of IRS links that provide the correct info:
And for those who don't wish to click on the link, here is the pertinent example given therein:
Date that you turn 70½
You reach age 70½ on the date that is 6 calendar months after your 70th birthday. Example: You are retired and your 70th birthday was June 30, 2013. You reached age 70½ on December 30, 2013. You must take your first RMD (for 2013) by April 1, 2014. Example: You are retired and your 70th birthday was July 1, 2013. You reached age 70½ on January 1, 2014. You do not have an RMD for 2013. You must take your first RMD (for 2014) by April 1, 2015.
Note in the second example above from the IRS website that the individual reaches 70 1/2 in January of one year and their first report isn't due until April 1 of the following year. I believe that this unequivocally demonstrates that the info contained in the OP's link is erroneous.
The problem if I did read it right waiting til the April date will then have you required to take out another RMD. by the end of December also. You then may get ino a higher tax bracket.
The problem if I did read it right waiting til the April date will then have you required to take out another RMD. by the end of December also. You then may get ino a higher tax bracket.
Exactly, which is why when I turned 70.5 in Feb 2015, I took my first RMD (for 2015) in Nov 2015. If I waited til April 2016 (to actually w/d 2015's RMD), I would had to also take another w/d for 2016 before end of year, bumping me into the next bracket for 2016.
Delaying 1st RMD until April only works once, for your first RMD. All future RMDs have to be done during each calendar year.
Can somebody explain the RMD requirements for a married couple? I've seen it mentioned in this thread but I don't have a link to what the rules are. I'm single but you never know.
Can somebody explain the RMD requirements for a married couple? I've seen it mentioned in this thread but I don't have a link to what the rules are. I'm single but you never know.
Only real difference is which of 3 tables of "factors" you use to calculate amount of RMD. Based on beneficiary status, and/or age. Each spouse figures and withdraws their own RMD separately.
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