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amiga13 amiga13 is online now
 
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RMDs
Old 02-04-2019, 12:03 PM
 
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I whined about dealing with money on another thread and some confusion about RMDs arose. I did some research and talked (again!) with my financial advisor. I think I get this:
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A required minimum distribution is the amount that owners of a traditional, SEP or SIMPLE IRA account and qualified plan participants must begin withdrawing from their retirement accounts by April 1 following the year they reach age 70 1/2.
And now that I get it (and know nothing depends on deceased DHís age), I am allowed the privilege of not even thinking about it for over 2 years. Yaaaaay!


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marguerite2 marguerite2 is online now
 
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Old 02-04-2019, 09:01 PM
 
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This stuff can be so confusing. Some accounts follow state rules; while others follow federal rules.

Iím glad you checked and, that for you, itís your age and not your deceased husbandís age that counts. But, others should be aware that thatís not the case for all inherited accounts. The age used depends on the type of account, and how it was titled after the spouseís death.

The good news is that the financial institution is obligated the first year to notify you of the necessity of taking the RMD. So, if you move, make sure that you have updated your information on your accounts.
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2grade 2grade is offline
 
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Old 02-12-2019, 11:36 AM
 
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RMDs can be confusing but be aware that the penalties for not taking them as stipulated can be a very costly mistake:
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50 percent of the RMD amount. If your IRA RMD is $10,000, that means a $5,000 penalty on top of the tax you already owe.
I have just started taking my RMDs. After years of saving and saving, it's hard to get used to required withdrawing.
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