IRA withdrawal question - RMD

[aja8888]

Sister just moved her IRA to Schwab from Edward Jones (EJ). EJ had not pulled her RMD as of the transfer and it will have to be done at Schwab. Helping Sis with this task (we know the amount to pull), Schwab does not show their typical “Take My RMD” page to make the pull from when looking into the subject. There is a page to make a typical withdrawal from the IRA though.

Question is will making a “typical withdrawal” of the RMD amount generate the 1099 that has the same distribution code as one pulled from the “Take My RMD” page?

I assume if the distribution code is the same, then the IRS would see the withdrawal as satisfying the RMD requirement.

Am I correct with that assumption?

Or should she call Schwab and ask for help pulling the RMD?

Thanks for any help or clarification on this situation.

 

[Gotadimple]

I think for the first time, she should just call. She may need to set up a voice password.

It sounds like they haven't caught up to the fact that she still needs to take an RMD. She may not have set up a Moneylink transfer yet - and that takes a bit of time (if the $$ are coming out and going into her bank).

- Rita

 

[TheWizard]

Doing a plain withdrawal from IRA to your linked checking account will be fine.
There is no special distribution code for RMD.

You also want to decide how to have your RMD withdrawn. I have 1/12 of my RMD hitting my checking account around the 17th of each month and I adjust the amount early each January...

 

[MarieIG]

I think for the first time, she should just call. She may need to set up a voice password.

It sounds like they haven't caught up to the fact that she still needs to take an RMD. She may not have set up a Moneylink transfer yet - and that takes a bit of time (if the $$ are coming out and going into her bank).

- Rita

I don't have a voice password, and they do handle my calls.

They have decent customer service, and should be able to help with this. Maybe sister can have AJ added as an agent/ trusted contact - as well as have him on the call.

 

[aja8888]

I don't have a voice password, and they do handle my calls.

They have decent customer service, and should be able to help with this. Maybe sister can have AJ added as an agent/ trusted contact - as well as have him on the call.

She put me on as Trusted Contact already. My Sis has absolutely NO CLUE about anything investment wise. EJ was milking her account. Those guys are thieves.

 

[aja8888]

Doing a plain withdrawal from IRA to your linked checking account will be fine.
There is no special distribution code for RMD.

You also want to decide how to have your RMD withdrawn. I have 1/12 of my RMD hitting my checking account around the 17th of each month and I adjust the amount early each January...

Thanks! That's what I thought too, but needed conformation. Once the new calendar year rolls around, Schwab will pick up the presence of the IRA and send her an RMD notification.

 

[MarieIG]

She put me on as Trusted Contact already. My Sis has absolutely NO CLUE about anything investment wise. EJ was milking her account. Those guys are thieves.

Glad to hear that you are looking out for her - and got her away from EJ.

 

[braumeister]

Doing a plain withdrawal from IRA to your linked checking account will be fine.
There is no special distribution code for RMD.

That's correct.
It's up to the taxpayer to take the right amount as an RMD; the brokerage just reminds you in most cases.