Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Vanguard Stretch Annuity Distributions
Old 03-15-2017, 04:23 PM   #1
Recycles dryer sheets
 
Join Date: Sep 2013
Posts: 86
Vanguard Stretch Annuity Distributions

In January 2016 I inherited a Vanguard Variable Annuity. I elected to take the stretch option and was notified by Vanguard that I had to take the first distribution by January 6, 2017. (One year from date of death). Simple enough.

January 1st to January 6th was too tight a window to suit me, I like to leave some room for error, so I arranged to take four equal quarterly distributions starting March 10th, 2016.

I assumed that the quarterly distributions, recalculated for account value and life expectancy, would continue in 2017. March 10th came and went and nothing.

So today I called Vanguard and said I think there's a glitch in my systematic withdrawal plan. He put me on hold to check it out and when he came back he said I don't have to make any further withdrawals until 2018, and they show the next withdrawal occurring on March 10, 2018.

I received a 1099 for 2016 for the withdrawals made in that tax year. If I go along with Vanguard I will have no distributions in tax year 2017.

Can anyone confirm that Vanguard has this right? I have options, I can just make an additional withdrawal at any time. But I would like to understand this better. As I told the rep., I just want to get this set to take care of itself and not have to be concerned with satisfying the minimum distribution rules.
__________________

upset264 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 03-15-2017, 05:11 PM   #2
Full time employment: Posting here.
 
Join Date: Apr 2013
Location: Beach and Mountain
Posts: 535
This looked like a good explanation:
Helping an Annuity Beneficiary Understand Distribution Options

"The first required minimum distribution from a nonqualified annuity must be taken within one year of the date of the annuity owner’s death
In each subsequent year, the beneficiary must take at least a life expectancy-based required minimum distribution by December 31"
__________________

Z3Dreamer is offline   Reply With Quote
Old 03-15-2017, 05:28 PM   #3
Recycles dryer sheets
 
Join Date: Sep 2013
Posts: 86
That is a good explanation, and I've read several. Thanks.


"The first required minimum distribution from a nonqualified annuity must be
taken within one year of the date of the annuity owner’s death
In each subsequent year, the beneficiary must take at least a life expectancy based

required minimum distribution by December 31"


I think my confusion was that I thought each subsequent distribution had to be made before each anniversary of the original owner's death.
upset264 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


Similar Threads
Thread Thread Starter Forum Replies Last Post
Vanguard Preliminary Capital Gain Distributions Looking4Ward FIRE and Money 3 11-16-2016 09:57 AM
Projected Vanguard distributions for 2015 Chuckanut FIRE and Money 3 12-18-2015 10:57 AM
Vanguard 2015 preliminary distributions available bizlady FIRE and Money 7 11-13-2015 08:44 PM
Vanguard Distributions? New Yorker FIRE and Money 4 06-24-2005 08:02 PM
Into The Stretch yakers Other topics 1 10-26-2004 11:14 PM

» Quick Links

 
All times are GMT -6. The time now is 03:53 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.