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View Poll Results: When did you start withdrawing for your IRAs?
I started withdrawing before required (MRD). 17 58.62%
I waited until required. 12 41.38%
Voters: 29. You may not vote on this poll

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Old 01-18-2016, 04:57 PM
 
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Didn't answer your poll because we haven't withdrawn any monies yet. We will wait until we are 70.5 and required to do so.
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Old 01-18-2016, 05:02 PM
 
Location: Los Angeles area
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Quote:
Originally Posted by golfingduo View Post
ER pretty simply it is the same. They are both the same in the eyes of the IRS. Now just remember to take those the year you need to or you will pay a penalty of 50% of what you were supposed to draw out.

Also you need to do that every year since the funds are not just sitting there. Some are earning and losing money. So what you need to take one year might be more or less than the previous year.
It is a non-issue for me personally. I was just curious to understand the overall picture of what people are facing. Thanks to you and others for the answers.
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Old 01-19-2016, 05:17 AM
 
Location: Central Massachusetts
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Quote:
Originally Posted by jlawrence01 View Post
In most cases that I have seen, the custodians will generally remind you to make the RMD and the amount that needs to be withdrawn.

Yes they will but only on the portion they control. Let's say for example you have 3 funds in your name. One at Fidelity, another at Charles Schwabb and you have a TSP account and you are 70.5 and need to make that RMD. Those three custodians will let you know what you need to take from their accounts, but you do not have to take from all. You can make your withdrawal from Fidelity or the TSP or any other one you have. As long as the total you take is what you need to take from the combined balance.
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Old 01-19-2016, 03:53 PM
 
Location: OH>IL>CO>CT
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Yes, your IRA custodian will notify you of your RMD amount, based on the previous year's ending balance on the books in your account. However, be careful of a potential trap that I now find myself in, having to do with "outstanding rollovers".

2015 was my 70.5 year, meaning I needed to do my 1st RMD based on 2014's ending balance. So in Oct 2015 I did a withdrawal based on the stated 2014 year end balance.

However, I had received a lump sum payout from a qualified pension plan in late Dec 2014 (I had no control over the timing). So the check was not deposited as a rollover into my existing IRA until early Jan 2015. Therefore not appearing in the 2014 y/e balance.

But apparently the IRS considers this a 2014 R/O, not 2015. This from IRS Pub 590B; "For a rollover from a qualified plan or another IRA that was not in any account at the end of the preceding year,increase the account balance of the receiving IRA by the rollover amount valued as of the date of receipt."

Unfortunately I only learned of this issue 2 weeks ago. I now know that is was my responsibility to add the payout (as a rollover) onto the stated balance, and do the RMD based on that total amount.

I have got advice that I may be OK, as this is my "First RMD", and as such the withdrawal can be accomplished by April 1, 2016. So I will be making a "makeup" withdrawal shortly, and hope the IRS can "follow the money". If it had been any later year, I would have been subject to the 50% penalty.
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Old 01-19-2016, 03:57 PM
 
Location: Central Massachusetts
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Quote:
Originally Posted by reed303 View Post
Yes, your IRA custodian will notify you of your RMD amount, based on the previous year's ending balance on the books in your account. However, be careful of a potential trap that I now find myself in, having to do with "outstanding rollovers".

2015 was my 70.5 year, meaning I needed to do my 1st RMD based on 2014's ending balance. So in Oct 2015 I did a withdrawal based on the stated 2014 year end balance.

However, I had received a lump sum payout from a qualified pension plan in late Dec 2014 (I had no control over the timing). So the check was not deposited as a rollover into my existing IRA until early Jan 2015. Therefore not appearing in the 2014 y/e balance.

But apparently the IRS considers this a 2014 R/O, not 2015. This from IRS Pub 590B; "For a rollover from a qualified plan or another IRA that was not in any account at the end of the preceding year,increase the account balance of the receiving IRA by the rollover amount valued as of the date of receipt."

Unfortunately I only learned of this issue 2 weeks ago. I now know that is was my responsibility to add the payout (as a rollover) onto the stated balance, and do the RMD based on that total amount.

I have got advice that I may be OK, as this is my "First RMD", and as such the withdrawal can be accomplished by April 1, 2016. So I will be making a "makeup" withdrawal shortly, and hope the IRS can "follow the money". If it had been any later year, I would have been subject to the 50% penalty.
You can ask for forgiveness on your first one. Please look into that.

Missed Your IRA's RMD Deadline? Here's What to Do | Fox Business

Quote:
Note that when submitting Form 5329, you also need to attach a brief explanation as to why you failed to take the necessary withdrawal. Let the IRS know you have already taken steps to correct this by requesting that the custodian send you your RMD. (Assuming this is true.) It might also be a good idea to have a tax professional look over your paperwork to ensure you have covered all the details.
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Old 01-20-2016, 01:17 PM
 
Location: Columbia SC
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I cannot remember the exact details, but I received a letter from the IRS basically saying I did not take an RMD I was supposed to take. When reviewing it we realized I had gotten confused when doing my taxes (Turbo Tax) based on the year the RMD was for and the year I actually received it. The IRS Rep. told me to call and get a RMD disbursement and it would all come out in the wash. I was surprised at how helpful the IRS Rep. was.
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Old 01-20-2016, 01:34 PM
 
Location: Columbia SC
9,018 posts, read 7,782,871 times
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I started the poll so time for me to answer. I had no need to take a RMD (as in I did not need the money) so I waited until I was required to do so and as I was happy with the mutual funds they were in. Even then for the first few years, I would reinvest the RMD's in other mutual funds. That could change this year as I might need to spend some of it.
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Old 01-22-2016, 05:18 AM
 
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If you withdraw $$ in the same year that you will turn 70.5, but before that date, does that count towards the required withdrawal?
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Old 01-22-2016, 05:43 AM
 
Location: Central Massachusetts
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Quote:
Originally Posted by Ellwood View Post
If you withdraw $$ in the same year that you will turn 70.5, but before that date, does that count towards the required withdrawal?

It depends on your birthday. Early in the year yes late in the year no.

Quote:
Date that you turn 70

You reach age 70 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 70 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 70 on January 1, 2014. You do not have an RMD for 2013. You must take your first RMD (for 2014) by April 1, 2015.
https://www.irs.gov/Retirement-Plans...ibutions-(RMDs)
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Old 01-23-2016, 03:29 PM
 
5,825 posts, read 13,335,810 times
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Quote:
Originally Posted by golfingduo View Post
It depends on your birthday. Early in the year yes late in the year no.



https://www.irs.gov/Retirement-Plans...ibutions-(RMDs)
Link was unavailable.

Turned 70 in December 2015. Was considering making a withdrawal in February 2016. Would the February withdrawal count for my RMD at 70-1/2 in June?
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