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RMD withdrawal
Old 09-14-2010, 11:31 AM   #1
 
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RMD withdrawal

I am facing my first RMD withdrawal this year and I was wondering if anyone has a formula for selecting what to withdraw from. My thinking is to withdraw using the same formula that I use for my AA after withdrawing money to bring my portolio into balance.
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Old 09-14-2010, 11:41 AM   #2
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Will you just use the withdrawn money to fund expenditures, or will it be reinvested in a taxable account? Have you never withdrawn from retirement accounts before?

Ha
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Old 09-14-2010, 01:34 PM   #3
 
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Will you just use the withdrawn money to fund expenditures, or will it be reinvested in a taxable account? Have you never withdrawn from retirement accounts before?

Ha
This will be my first withdrawal. It will be reinvested in a taxable account.
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Old 09-14-2010, 04:23 PM   #4
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This will be my first withdrawal. It will be reinvested in a taxable account.
OK, then what you probably want to think about doing is to sell off in your IRA from the most tax-efficient assets -- typically stocks -- and then buy the same stuff back on the taxable side. This assumes you have adequate funds elsewhere in your taxable account to pay for the taxes on your RMD. Otherwise, hold back an amount of the RMD for taxes and put the rest in the stocks.

or go out and buy something frivolous.
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Old 09-14-2010, 04:44 PM   #5
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I believe most places will transfer the assets you select from an IRA to another taxable account with the firm. That way you don't incur any additional transaction fees.
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Old 09-14-2010, 05:02 PM   #6
 
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Thanks for the replies, they've been very helpful.
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