VG RMD Service

[explanade]

Got this email.

Dear XXX:

The confirmation for your Required Minimum Distribution (RMD) Service from January 13, 2023, is now available on our website.

To view your confirmation, follow these steps:

1. Log on to your Vanguard account.
2. From the menu, choose My Accounts and then select Statements.
3. Select the Confirmations tab.

This is my mother's tIRA. I've manually had this account disburse RMDs in previous years.

I hope this doesn't mean someone or something triggered an RMD distribution.

I assume this is just notifying that they've already calculated the RMD for this year?

Never saw this notification before.

 

[Bamaman]

Sounds as if they're going to document the amount that she must withdraw in 2023--based on the o/s balances 12/31/2022.

I do assume you did make a RMD in 2022?

I'm a 1950 baby, and had to make my first RMD before the EOY, 2022. It sure hurt paying those taxes (federal and state) and getting kicked up to a higher level of taxation. Up to now, I've paid virtually none of the 5% state income taxes.

 

[foxfirev5]

It doesn't appear to be a problem. I just saw the same email for my DM's account. Since I just did a manual RMD on 1/5 I was curious. It shows the RMD distribution with no further w/d scheduled for 2023.

 

[Sue J]

I got the same email for my inherited IRA. They are just letting you know what the RMD is for the year and how they calculated the amount.

I usually take the RMD later in the year, but you can ask for monthly payments if you want. They have a few options for automatic payment setups.

 

[Koolau]

My 401(k) trustee informed me of my RMD for the year. They also indicated that If I didn't take all that I was required to do, they would send me a check which would meet my RMD requirement. I guess that's good.

 

[Midpack]

I won’t start RMDs for another 5 years but it’s nice to know Vanguard does this.

 

[grasshopper]

I turn 72 in 2023 and I received my RMD report from Vanguard. Better early than late.

 

[audreyh1]

I turn 72 in 2023 and I received my RMD report from Vanguard. Better early than late.

But you don’t have to take RMDs until you are 73 now. So you have one more year.

 

[grasshopper]

But you don’t have to take RMDs until you are 73 now. So you have one more year.

Thanks I knew this, my comment better early than late, was to acknowledge that Vanguard was on the ball, but early by a year.

 

[audreyh1]

Thanks I knew this, my comment better early than late, was to acknowledge that Vanguard was on the ball, but early by a year.

Oh, I see. I’m sure Vanguard hasn’t caught up with the very recent law change. But unfortunately some of their customers will think they still have to start at 72.

 

[aja8888]

I won’t start RMDs for another 5 years but it’s nice to know Vanguard does this.

Schwab and other firms send out the same notifications. I've been drawing RMDs for 8 years now and get a letter every year from my 3 IRA account holders.

 

[Car-Guy]

I noticed the first few days of January that Schwab had info notices on their website "when I logged on", that I had to take RMD's this year. They even gave me the exact amount I needed to withdraw. I thought to myself, that's not right, they just changed the law and I don't need to take out RMD's until next year. Sure enough, I got an email about a week later confirming that fact. In another few days the warning messages on their website disappeared.

 

[Philliefan33]

My 401(k) trustee informed me of my RMD for the year. They also indicated that If I didn't take all that I was required to do, they would send me a check which would meet my RMD requirement. I guess that's good.

That’s not good if you have multiple IRAs and wish to take all, or a higher percentage, of the combined RMD from the other IRA.

 

[Koolau]

That’s not good if you have multiple IRAs and wish to take all, or a higher percentage, of the combined RMD from the other IRA.

Yeah, the good news on my finances is that I have no tIRAs any more - all converted to Roth. Only my 401(k) has to be RMD'd. Kinda nice to only worry about one RMD per year but YMMV.

 

[SecondCor521]

That’s not good if you have multiple IRAs and wish to take all, or a higher percentage, of the combined RMD from the other IRA.

The RMD rule for IRAs and 401(k)s are different.

IRA RMDs are based on the total value of all IRAs and can be taken from the IRAs in any proportion the retiree wishes.

401(k) RMDs are calculated individually on each 401(k) and must be taken from each individual 401(k).

Since Koolau said this was a 401(k), the concern you mention wouldn't apply.

 

[Koolau]

The RMD rule for IRAs and 401(k)s are different.

IRA RMDs are based on the total value of all IRAs and can be taken from the IRAs in any proportion the retiree wishes.

401(k) RMDs are calculated individually on each 401(k) and must be taken from each individual 401(k).

Since Koolau said this was a 401(k), the concern you mention wouldn't apply.

True, and since I only have one 401(k), it's moot (thank goodness!)