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View Poll Results: How often do you only take the RMD from your account to which RMDs apply?
Always, never taken more (100%) 23 47.92%
Almost always (90-99%) 6 12.50%
Most of the time, but occasionally take more (67-90%) 4 8.33%
Very roughly half the time (33-66%) 0 0%
Not often (11-33%) 0 0%
Hardly ever (1-10%) 2 4.17%
Never (0%) 13 27.08%
Voters: 48. You may not vote on this poll

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How many ER readers are taking more than the RMD?
Old 11-14-2019, 06:47 AM   #1
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How many ER readers are taking more than the RMD?

In the thread "RMD Life Expectancy Update", Kitces says that only 20% of those subject to RMDs take only the minimum, 80% take more. I know this board is the Lake Woebegone of the Internet, but I was curious how our numbers compared.

(I know my choices are kind of like an inverted bell curve; I figure more people will be at the high or low extremes, with fewer in the middle, so I wanted to measure those ends more specifically. If I'm wrong, I'm wrong, but I wanted to account more for those near either end.)
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Old 11-14-2019, 08:19 AM   #2
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I went with most of the time. As planned, we plundered our kitty extra getting from 60-62. Now throttling back. Will will also raid our stash to fund some foreseen moving expenses and one-off travel(s).

Also, we are comfortable with spending down a specific portion of our portfolio for travel and travel upgrades, while health permits. We have no plans to let heirs or the IRS to enjoy what we want to enjoy (we plan to leave a modest estate, but we come first).
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Old 11-14-2019, 08:23 AM   #3
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Oops. I misread the poll, so my vote is wrong. At 8 votes, right now that's significant.

I rarely take more out now, took more in the early years. These are inherited IRA's. I'm not RMD age for mine yet.
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Old 11-14-2019, 08:42 AM   #4
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I'm not of RMD age, so I didn't vote. However, I expect not to have any RMDs at all (due to Roth conversions between age 49-70), and I don't see an option for that. If I'm unable to fully convert, I'll look at the factors and decide whether to do just RMDs, or to convert any over the top of the RMD to a Roth. It's my understanding that you have to take the RMD first, then you are free to withdraw or convert beyond that.
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Old 11-14-2019, 08:42 AM   #5
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We have only been taking RMD for a couple of years. The money goes into a taxable account and so far has not been touched. This will more than likely continue for many years to come. I guess we need to start spending some of it.


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Old 11-14-2019, 08:49 AM   #6
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I'm not RMD age but our current and expected future IRA withdrawals far exceed what our RMD will eventually be. As such, RMDs are moot for us.
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Old 11-14-2019, 08:54 AM   #7
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Beyond rounding up to the nearest $100 I've never taken more than the minimum RMD amount.
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Old 11-14-2019, 08:57 AM   #8
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Since it's only applied 2X, hard to answer.
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Old 11-14-2019, 09:09 AM   #9
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I've only got a modest inherited IRA that is subject to RMDs and I'm only two distributions into it. But since I'm not yet of SS age and have nearly half of our assets are in after-tax accounts I have no need to take more than the required minimum. I use the RMD for income tax withholding with any balance being re-invested in the taxable account.
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Old 11-14-2019, 09:11 AM   #10
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Not at RMD yet.
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Old 11-14-2019, 09:14 AM   #11
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I'm not there yet, so I didn't vote. However, since I'll probably have a pretty hefty sum in IRAs by then, I have thought about starting to tap into it as soon as I hit 59.5, to help take the sting off of later years.

I'm 49 now, and have about $707K in IRAs/current 401k. So, if left totally alone, that could swell to a pretty big number by the time I hit 70.5. As it stands, the RMD on $707K would be around $26K at 70.5 (assuming it's still ~3.7% for the first year). The taxes on that shouldn't be too hideous. But, I have a feeling that 21 years of compounding is definitely going to add up.
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Old 11-14-2019, 09:21 AM   #12
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Still too young (56) to take RMDs. My IRA is one of my "reinforcements" but I doubt I'd need to tap into it right away even when I become eligible. I am near the top end of MAGI to get an ACA subsidy, so it is imperative to avoid any added income which would throw me over the increasingly greater cliff.


Like Andre1969, I'd get stung pretty good with my IRA's balance nearly as high as his, although I am closer to having to take an RMD than he is.
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Old 11-14-2019, 09:32 AM   #13
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I just ran some numbers. Assuming I retire about 1/4 of the way into 2021, and also assuming a 7% return on investment...

By the time I hit 59.5 (2029), my $707K could grow to around $1.6M. If I left it untouched until 70.5 (2040), it would be around $3.2M! That first RMD would be around $118,400 (again assuming a 3.7% first RMD).

Now, I know inflation will take its toll, and tax brackets will rise, and possibly change, as well. But, I have a feeling that, while $118,400 won't seem like as big of a number, 21 years from now, it'll still be big enough to get hit with a pretty good tax bill.

Oh, and thanks for bringing up the ACA subsidy, Scrabbler. That's something I never looked into...but I guess maybe I should!
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Old 11-14-2019, 10:10 AM   #14
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Not at RMD yet, but expect to just take the minimum.
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Old 11-14-2019, 10:19 AM   #15
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I round up to the nearest $1,000.

DW takes minimum RMD, but when one of her children (by previous marriage) gets into a bind for a few $K, she pulls out what's needed and gives me the estimated tax owed to send in the next quarterly payment.
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Old 11-14-2019, 10:33 AM   #16
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Plan to maximize conversions until 70 and then take the minimum.
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Old 11-14-2019, 11:06 AM   #17
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Not at RMD yet but have already converted all my tIRA to a Roth IRA.
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Old 11-14-2019, 11:09 AM   #18
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not at RMD but already taking more than minimum now and expect to continue once I do get there.
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Old 11-14-2019, 11:14 AM   #19
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I only take the required amount .
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Old 11-14-2019, 11:35 AM   #20
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Quote:
Originally Posted by RunningBum View Post
I'm not of RMD age, so I didn't vote. However, I expect not to have any RMDs at all (due to Roth conversions between age 49-70), and I don't see an option for that. If I'm unable to fully convert, I'll look at the factors and decide whether to do just RMDs, or to convert any over the top of the RMD to a Roth. It's my understanding that you have to take the RMD first, then you are free to withdraw or convert beyond that.

That's a good point, but I was just curious how members here who have been subject to a RMD behave compared to the 20% number Kitces cited as discussed in the other thread, so I intentionally only wanted to poll those who had been subject to an RMD. Once I have to start taking RMDs from my 401(k) I'll probably do the same as you. Shoot, I hope it didn't sound like I meant to exclude workplace plans.
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