Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Rmd timing
Old 04-09-2013, 11:24 AM   #1
Full time employment: Posting here.
 
Join Date: Mar 2010
Location: Chicago
Posts: 867
Rmd timing

I have a mid five figure Inherited Ira that I have to take a RMD from before the end of the year. I have taken this rmd in the past monthly or at the beginning of the year. I am thinking now might be a good time to take it with the market at an all time high. Any thoughts folks?
__________________

__________________
ripper1 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-09-2013, 01:34 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Location: Northern Kentucky
Posts: 8,601
Only you can answer, since it depends on both the holdings in the IRA and your personal tax situation. Not enough info in the question to respond.
__________________

__________________
braumeister is offline   Reply With Quote
Old 04-09-2013, 01:56 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,615
The "all time high" has nothing to do with what will happen next, of course. Every time in the past that the market hit new highs it went on to have even higher-highs later (maybe the very next day, maybe in a year plus).

- If you want to bet that the market is going to fall or you want to be covered if it does, you could take the RMD and put the money into an after-tax account, invested in equities. If the market drops you can sell the shares later and harvest the losses to reduce your income (and taxes). Obviouslyu, you can't do that if it stays in the IRA. OTOH, if the market goes up the gains would be taxed at the favorable cap gains rates (0% if you are in the 15% bracket), not the higher rate they would be subject to when withdrawn from the IRA. So, I don't see any down side to taking the money now.
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is online now   Reply With Quote
Old 04-09-2013, 02:03 PM   #4
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,107
Quote:
Originally Posted by ripper1 View Post
I am thinking now might be a good time to take it with the market at an all time high. Any thoughts folks?
It could go higher: Why we’ll see Dow 18,000 before this bull run ends

...or not: New Critical Warning as 2013 shocker looms
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 04-09-2013, 02:16 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Nov 2011
Posts: 2,364
If you are convinced the IRA investment is peaking, now is reasonable time to withdraw... but no one can time the peak that well.

If it's a tIRA then I agree with samclem. If it's a Roth IRA, if you wait until the end of the year and the Roth's investments increase in value even further, you'll pay no tax on that gain.
__________________
GrayHare is offline   Reply With Quote
Old 04-09-2013, 02:20 PM   #6
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,455
You don't need to take the distribution now, it's a tax deferred account. If you think you can time, then sell what is at a peak and invest it in an interest bearing asset until year end. No sense in giving up the tax deferral until you need the money or cannot delay.
__________________
MichaelB is offline   Reply With Quote
Old 04-09-2013, 02:33 PM   #7
gone traveling
 
Join Date: Mar 2007
Posts: 559
Quote:
Originally Posted by REWahoo View Post

don't forget this book from dec 1999


Dow 40, 000: Strategies for Profiting from the Greatest Bull Market in History: David Elias: 9780071351287: Amazon.com: Books
__________________
gerrym51 is offline   Reply With Quote
Old 04-09-2013, 08:36 PM   #8
Thinks s/he gets paid by the post
walkinwood's Avatar
 
Join Date: Jul 2006
Location: Denver
Posts: 2,676
Quote:
Originally Posted by MichaelB View Post
You don't need to take the distribution now, it's a tax deferred account. If you think you can time, then sell what is at a peak and invest it in an interest bearing asset until year end. No sense in giving up the tax deferral until you need the money or cannot delay.
+1.
What you sell or buy in the IRA is not connected to when you need to withdraw. In fact, if you have the choice, and are planning on investing the withdrawn amount, it is better to withdraw when the market is low - you pay less taxes.

Why not treat RMDs from an IRA just like withdrawals from a retirement portfolio. Keep the next 2-3 years of RMDs in a safe investment so that you're never forced to sell something in a slump just to meet RMDs.
__________________

__________________
walkinwood is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 10:46 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.