Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Did you miss the RMD last year?
Old 01-13-2005, 08:30 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,881
Did you miss the RMD last year?

http://www.investopedia.com/printabl.../05/011005.asp

There's no denying the tax benefits of funding a retirement account, but our money can't avoid the IRS completely forever. That's why owners and beneficiaries of Traditional, SEP & SIMPLE IRAs, qualified plans and 403(b) accounts must distribute a minimum amount by their required minimum distribution (RMD) deadline Failing to withdraw your RMD by the applicable deadline may result in you owing the IRS an excise tax of 50% of the RMD shortfall. If for any reason you miss your deadline, there are some steps you must take.

Conclusion
Missing your RMD deadline can be a frustrating and costly mistake. To ensure it does not happen, take the necessary steps to make sure your withdrawal occurs by the applicable deadline. This includes making arrangements with your custodian for systematic or automatic withdrawals to occur on a predetermined date, submitting your withdrawal requests at least two months before the deadline and checking your statements to ensure the correct amount was distributed from your account. Submitting your requests early allows sufficient time for any necessary adjustments. Talk to your financial institution about other ways they can help you to satisfy your RMD requirements.
__________________

__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd 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!

Re: Did you miss the RMD last year?
Old 01-13-2005, 02:27 PM   #2
Full time employment: Posting here.
 
Join Date: Sep 2003
Posts: 902
Re: Did you miss the RMD last year?

This thread brings to mind a conversation my wife and I had recently - about the complexities of managing personal finances. Most main street small businesses are probably worth less than the holdings of most of the folks here. There's the whole shark infested world of investing you must understand, tax law, estate planning, college financial aid rules, computerized transactions, record-keeping, and on and on. I don't know a single person in my sphere of friends and family who can do all the things we take in stride. They must rely on others to tell them what to do - at great cost. We're very lucky - not only to have what we have - but to have what it takes to manage all of it. I'm not sure what I'll do when/if I start slipping and can't do it anymore. Hopefully one of my kids will learn the ropes and take over for me.
__________________

__________________
Bob_Smith is offline   Reply With Quote
Re: Did you miss the RMD last year?
Old 01-13-2005, 03:09 PM   #3
 
Posts: n/a
Re: Did you miss the RMD last year?

Yep, it is a big help when you have all of the answers

JG
__________________
  Reply With Quote
Re: Did you miss the RMD last year?
Old 01-14-2005, 09:58 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,881
Re: Did you miss the RMD last year?

Quote:
. They must rely on others to tell them what to do - at great cost.
Sure, we have transitioned from a manufacturing society to a service society. Many (most ?) folks do not want to take the time to learn even the most bacic stuff in life ( doing taxes, investing etc) so they fork over their hard-earned (service related) money to someone else who provides that necessary service.

I manage all of my own investments but the wife would be lost if I were dead and gone. My instructions to her are simple. If I go before you do, exchange 100% of our tax-deferred investments to the Vanguard Total Retirement 2025 fund and leave it there. Seems like a good idea to me.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Re: Did you miss the RMD last year?
Old 01-14-2005, 10:07 AM   #5
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Re: Did you miss the RMD last year?

Quote:
I don't know a single person in my sphere of friends and family who can do all the things we take in stride. I'm not sure what I'll do when/if I start slipping and can't do it anymore. Hopefully one of my kids will learn the ropes and take over for me.
Another reason we're converting our RMD-burdened IRAs to Roths...
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords 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
15 yr vs. 30 year Jbird FIRE and Money 16 04-26-2007 03:17 PM
Year One REWahoo Other topics 23 05-31-2006 03:38 PM
FireCalc: Year 1, 2, etc kat FIRE and Money 16 02-02-2006 10:41 AM
Year of the Dog Spanky Other topics 2 01-29-2006 12:33 PM
Question for Dory36 on FIRECalc moguls FIRE and Money 24 03-06-2004 06:03 AM

 

 
All times are GMT -6. The time now is 06:30 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.