Did you miss the RMD last year?

[mickeyd]

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.

[Bob_Smith]

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.

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

JG

[mickeyd]

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.

[Nords]

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...