Originally Posted by FIRE'd@51
Also, be aware that any stocks that have gone down since they were purchased get their basis stepped down.
Thank you for that note. It is helpful to know as we wait for the taxable brokerage to move through the institution's paperwork process. It has been an interesting process to watch. Evidently some companies have a not-so-simple work flow, lengthening the time to complete.
A new twist is that the beneficiary spousal IRA that passed from Husband to Wife did not make it into the managed account. While Husband was alive, the IRA was under management, including sending the RMD. Oh well, there will be less fees for the company.
I've been reading about RMDs, and how to calculate the next year's RMD. I'm relying on this table:
Seems simple enough.
1) I confirmed that 2017 RMD was exactly the E-O-Y IRA 2016 balance divided by 13.4 (husband was 87 in 2017).
2) Since husband was 3 years younger, it makes sense to "Distribute based on owner’s age using Table I". Ref: https://www.irs.gov/retirement-plans...-beneficiaries
3) In subsequent years, "Reduce beginning life expectancy by 1 for each subsequent year". Ref: same as in 2). I take this to mean that the 2018 RMD would use a factor of 12.4.
Does my analysis of this look correct? I'm aware of the numerous calculators on the internet that are available, but would like to understand this strictly based on the IRS guidance and documents.