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I don't have a 401K or IRA--turned mine into a Roth account several years ago but it was small at the time
Used lot of my 403B account to buy additional years in my teacher retirement account to raise my monthly pension--one of the best decision I made--plus my husband has survivor pension if I go first--
Not a large monthly amount but better than a poke in the eye...
My husband has a Roth that is good bit smaller than his two IRAs--one is a Fidelity target account his company moved his 401K into about 18mo ago when they moved all retired employees out of the company's 401K
The other larger is w/TDAmeritrade in DFA ETFsand bond funds--
I just wondered how many people when they are taking RMDs whether you do it before the 70.4 requirement or sooner--
Do you sell inside the account and take cash to use or save as you need
Do you take the RMD in the shares themselves and just transfer into a taxable account
Do you do something else with the withdrawal--maybe buy annuity or make charitable donation to offset taxes
I know Mathjak has commented on the unraveling of the retirement portfolio is just as important or more in some cases as the creation of the retirement portfolio...
Just wondered if the market being so down at the end of the year was making people--especially retired investors---reconsider how they might manage their RMDs/withdrawals...
I always thought you had to cash out the RMD amount. Does anyone know if you can "move" shares to a taxable account instead of taking the cash? I always thought funds in an IRA, 401k, 403b were not transferable to non-retirement accounts.
I always thought you had to cash out the RMD amount. Does anyone know if you can "move" shares to a taxable account instead of taking the cash? I always thought funds in an IRA, 401k, 403b were not transferable to non-retirement accounts.
If so, what would you do with the proceeds ? Put in under the proverbial mattress ?
Of course you can put it in any type of non-retirement account you want. Bank CD, Fidelity money market, Schwab mutual fund, whatever.
Been doing such for last 4 years with RMDs, and before that after age 59.5.
I always thought you had to cash out the RMD amount. Does anyone know if you can "move" shares to a taxable account instead of taking the cash? I always thought funds in an IRA, 401k, 403b were not transferable to non-retirement accounts.
You can do a like kind transfer of assets to a taxable account. So you can do a taxable transfer of funds or stocks with no trading fees where there typically would be to satisfy the rmd. You keep the same funds but they get moved to a taxable account
I always thought you had to cash out the RMD amount. Does anyone know if you can "move" shares to a taxable account instead of taking the cash? I always thought funds in an IRA, 401k, 403b were not transferable to non-retirement accounts.
I have not started yet with my RMDs. Plan to start in 5 days.
Plan is:
a. move minimum required amount of cash/short-term bond money from tradIRA to taxable.
b. move 20% of that amount from Fidelity taxable to my estimated taxes account at my credit union
c. pay my usual quarterly taxes
d. move money from Fidelity taxable to checking account IF I need the money
Our IRAs and brokerage accounts are with Fidelity, so we sell within the IRA and move the funds to our brokerage account (except amounts used for QCDs). We then make the decision whether to continue with the same investment strategy, but have been moving more conservative in the brokerage account than in the IRAs. In prep for next year, we sold 1/3-1/2 of the amount needed for 2019 RMDs in stocks in the IRAs in Sept-Oct.
I selected 'other' because there was no 'all of the above' option.
I have not taken my RMDs but have managed my husband's RMDs in the last 2 years. Since RMD is what a person has to take every year after turning 70 1/2, I don't think that there is a single RMD strategy is the best for everybody all the time.
We took my husband's last 2 RMDs in cash to use as part of the down payment for our current home in Idaho.
Since my retirement 3 years ago, we have also tried to reduce future RMDs by yearly Roth IRA conversions. I usually have to wait until near the end of the year (after mutual year-end distributions were published) to know how much to convert. I try to keep our AGI for the year below the Medicare part B premium next income bracket. One of the thing I miss about living in NY is the income tax exclusion of $20K/person for pension/retirement distribution.
For 2019, I will definitely utilize the qualified charitable distribution option for our yearly charitable donations directly from our IRAs.
2018 is a big spending year for us with paying for the relocation across the country, fixing/upgrading our old home in NY to facilitate quick home sale, buying new furniture, home furnishings, lawn care equipment etc. for the new home. I don't anticipate a lot of out-of-routine spending next year. I will likely either wait for the market to rebound to either withdraw my husband's RMD in cash and hold it for better market condition to reinvest in equity or just move the equity shares to a taxable account.
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