Vanguard RMD calculations

[harllee]

This is my first year doing RMDs (turned 72 on 10/27/23). I have my IRA at Vanguard and wanted to use their RMD service to calculate my RMD for 2024. I went to my Vanguard account, it shows that I am required to take an RMD but when I click on the RMD calculator the page states it is not available. Any one else having trouble doing RMD calculations on the Vanguard website?

 

[grasshopper]

Yes, I get the "Sorry we don't have your calculation." I only have 1 tIRA and I can divide so just did it my self.

 

[GalaxyBoy]

Schwab has a free calculator that doesn’t require you to have a Schwab account:

https://www.schwab.com/ira/ira-calculators/rmd

 

[SecondCor521]

We're not, but I'm too young and my Dad's RMD service has been going automagically for years now.

I'm sure you know that the first RMD can be delayed to April 1st of next year for you, although it's usually not recommended because then your first and second RMD would both be required next year, and the tax implications of that aren't the best.

That's the only reason I can think of that it might not be showing for you.

But the RMD math is super easy. Take your 12/31/2023 IRA balance (from your December statement) and divide it by the divisor for your age on your birthday this year. The divisor is found in Table III of IRS Pub 590-B, and for age 73 it's 26.5.

So if you had a $1M IRA, the RMD would be $1M / 26.5 = $37,735.85.

It does get a bit more complicated if your spouse is more than 10 years younger than you and is the sole beneficiary of your IRA. In that case, you need to look up the divisor in Table II instead of Table III.

It also can get more complicated if you have multiple IRAs - if so, you can aggregate the totals and take the RMD from any of them.

Finally, the RMD is a minimum. In the simple case, you could take out $38K and that would be fine.

Oh, one more thing: If you're charitably minded, it would likely be smart to use QCDs for your gifting aims.

 

[harllee]

I already do QCDs, have done so since I was allowed to do so. I can certainly calculate my RMD myself, have already done so. But I had understood that Vanguard would calculate my RMD and remind me to take it before year end if I had not completed it. I just cannot figure out how to do it on the Vanguard website.

 

[Koolau]

I already do QCDs, have done so since I was allowed to do so. I can certainly calculate my RMD myself, have already done so. But I had understood that Vanguard would calculate my RMD and remind me to take it before year end if I had not completed it. I just cannot figure out how to do it on the Vanguard website.

I'm assuming they will do that soon, though I have no experience (no tIRAs at V or elsewhere.) My guess is they will have that number soon. They've probably got a glitch but have more pressing things to w*rk on since you don't have to do your RMD until year's end.

I am kind of surprised, as I could have calculated that on my Commodore 64 programmed in BASIC - 30 years ago.

 

[disneysteve]

This is my first year doing RMDs (turned 72 on 10/27/23). I have my IRA at Vanguard and wanted to use their RMD service to calculate my RMD for 2024. I went to my Vanguard account, it shows that I am required to take an RMD but when I click on the RMD calculator the page states it is not available. Any one else having trouble doing RMD calculations on the Vanguard website?

I've used the Vanguard RMD calculator the last 2 years. I just checked and it says it's currently unavailable so I suspect it's a temporary site issue. Check back in a few days.

 

[Tom57]

My RMD amounts are in Vanguard

I've used the Vanguard RMD calculator the last 2 years. I just checked and it says it's currently unavailable so I suspect it's a temporary site issue. Check back in a few days.

I just checked and Vanguard has my and my wife's RMD $ amounts for 2024.
Click on Tax Forms & Information on the main screen after you log on to Vanguard. I guess that I have all our IRA money at Vanguard so they do not have to wait on other sites/providers (Fidelity, Schwab, etc).
I was surprised that Vanguard differed by $ .01 to $.02 compared to the free Schwab RMD calculator. I do not know who is correct because the difference is too little to worry about.

 

[Chuckanut]

Any idea when to withdraw the RMA? I will reinvest it in my taxable account so as to duplicate the same holdings. What about withholding on the RMD?

 

[Sunset]

I just checked and Vanguard has my and my wife's RMD $ amounts for 2024.
Click on Tax Forms & Information on the main screen after you log on to Vanguard. I guess that I have all our IRA money at Vanguard so they do not have to wait on other sites/providers (Fidelity, Schwab, etc).
I was surprised that Vanguard differed by $ .01 to $.02 compared to the free Schwab RMD calculator. I do not know who is correct because the difference is too little to worry about.

Vanguard has no idea if I have an IRA at other brokers, how would they know ?

It's up to me to add up all the IRA amounts or RMD's for all the IRA's and decide where I will take it from.

 

[The Cosmic Avenger]

Wow, Fidelity had mine on the 2nd or 3rd. Which is good, because I needed to use it for a big expense last week.

 

[Sunset]

Wow, Fidelity had mine on the 2nd or 3rd. Which is good, because I needed to use it for a big expense last week.

Wouldn't it be pretty close to the previous year amount ?

 

[SecondCor521]

Wouldn't it be pretty close to the previous year amount ?

The RMD is generally based on your account balance and the divisor.

The account balance fluctuates based on investment returns and withdrawals.

The divisor goes up each year, usually by a bit less than 1.

My Dad's went up a bit this year compared to last year but is in the same ballpark.

 

[Sunset]

The RMD is generally based on your account balance and the divisor.

The account balance fluctuates based on investment returns and withdrawals.

The divisor goes up each year, usually by a bit less than 1.

My Dad's went up a bit this year compared to last year but is in the same ballpark.

+1.

Guess my question mark, was misleading

I should have said: It would be close to the previous year.

 

[omni550]

+1.

Guess my question mark, was misleading

I should have said: It would be close to the previous year.

Actually, with the difference in performance of the stock market, my RMDs are significantly higher this year than last year.


omni

 

[braumeister]

After years of diligently converting to Roth at the highest level I was comfortable with, I finally got the Trad down to a low balance, and I'm happy to just make QCDs instead of RMDs. It no longer has any effect on my income.

 

[The Cosmic Avenger]

Wouldn't it be pretty close to the previous year amount ?

I had an idea what it would be, but when I have Fidelity withdraw it for me they also pay state & Fed taxes on it, but I don't know if I can do that if I make a manual withdrawal. So I wanted to wait for the calculated RMD to save myself some additional effort. But yes, I could have guessed pretty closely.

 

[Koolau]

Actually, with the difference in performance of the stock market, my RMDs are significantly higher this year than last year.


omni

Yeah, despite my best efforts to lower the amount in my 401(k), it keeps going up! Oh, well. I'll muddle through somehow.


If you look at the RMD tables, the divisor changes over time. For us young'uns (early to mid 70's), it doesn't change too dramatically. But by the time you hit the 80s and above, it begins to accelerate. SO, if by then, you haven't managed your 401(k) or tIRA (etc.) balances, the RMDs can become quite large, depending upon all the factors. YMMV

 

[Badger]

We have our IRAs with Vanguard. For the last few years we have them make the RMD automatic on the days of our choosing and put it in a taxable account. I always check the distribution that is calculated with the formula on the IRS webpage and the IRA balance at the end of the previous year. So far, so good.

 

[harllee]

Vanguard has finally got the RMD page fixed and I was able to do my RMD calculation today and I can set up a distribution schedule.