Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 04-02-2020, 04:55 PM   #61
Recycles dryer sheets
socaldonnan's Avatar
 
Join Date: Mar 2016
Location: Simi Valley
Posts: 55
As I just found out about the suspension of RMDs, do I assume DH needs to get in touch with Vanguard to request the suspension? I mentioned this suspension to a friend and she advised me that her advisor at Morgan Stanley sent her an email addressing this. We are Flagship clients guess we aren’t that special.
socaldonnan is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-02-2020, 05:02 PM   #62
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 4,172
Quote:
Originally Posted by socaldonnan View Post
As I just found out about the suspension of RMDs, do I assume DH needs to get in touch with Vanguard to request the suspension? I mentioned this suspension to a friend and she advised me that her advisor at Morgan Stanley sent her an email addressing this. We are Flagship clients guess we aren’t that special.
sounds like a good idea unless you want VG to guess whether you want the suspension or not. That would be a risky thing for anyone to assume. The best solution is for the custodians to send you a letter w/ the action/no-action consequences. Even that has some risk if you don't receive or read it.
kaneohe is offline   Reply With Quote
Old 04-02-2020, 05:16 PM   #63
Thinks s/he gets paid by the post
Souschef's Avatar
 
Join Date: Dec 2015
Location: Santa Paula
Posts: 3,820
I readjusted my estimated taxes for the year downward. I had already taken half my RMD in January and February before the market tanked.
I will take the money i have allocated for the rest of the year out of my taxable account.

It sure is nice paying only 15% on the CG instead of 22% on the whole amount.
__________________
Retired Jan 2009 Have not looked back.
AA 60/35/5 considering SS and pensions a SP annuity
WR 2% with 2SS & 2 Pensions
Souschef is online now   Reply With Quote
Old 04-02-2020, 06:53 PM   #64
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 6,770
Quote:
Originally Posted by socaldonnan View Post
As I just found out about the suspension of RMDs, do I assume DH needs to get in touch with Vanguard to request the suspension? I mentioned this suspension to a friend and she advised me that her advisor at Morgan Stanley sent her an email addressing this. We are Flagship clients guess we aren’t that special.
Vanguard, I'm sure, has to follow client instructions. To do otherwise would be to invite lawsuits of financial malpractice.

If you have standing instructions in place, such as my Dad does for a monthly automatic RMD, I'm sure that will continue to take place until or unless you direct otherwise.

Vanguard may provide a newsletter or email advising clients of the options and how to do so, but I'm sure they'll wait for affirmative statements from clients to follow. Without you telling them, they have no way of knowing whether you want to continue with your RMDs or not.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is offline   Reply With Quote
Old 04-03-2020, 03:48 AM   #65
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 11,413
Re RMDs, VG won't do anything you don't tell them to do.

Vanguard sends Mr. A a note each year, reminding him to take his RMD, and inaccurately estimating the amount. He uses the table for people whose spouses are 10+ years younger, while VG estimates the "full" RMD.
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success – to be able to spend your life in your own way.’ Christopher Morley.
Even a blind clock finds an acorn twice a day.
Amethyst is offline   Reply With Quote
Old 04-03-2020, 09:20 AM   #66
Thinks s/he gets paid by the post
 
Join Date: Jun 2017
Location: Western NC
Posts: 3,632
My Fidelity home page used to have a section devoted to reminding me "we estimate you will need to take a RMD of $xxxx this year" but now that has disappeared.
ncbill is online now   Reply With Quote
Old 04-03-2020, 11:27 AM   #67
Thinks s/he gets paid by the post
 
Join Date: Jun 2002
Posts: 1,519
I was on the VG web site a couple of days ago arranging a QCD. I double-checked to make sure I had no RMDs scheduled as I want to take advantage of the waiver. To my surprise, there was no mention of the fact that RMDs need not be taken this year. I would have thought there would have been an attention-grabbing banner or a pop-up on the page where you go to arrange RMDs.
__________________
friar1610
friar1610 is offline   Reply With Quote
Old 04-03-2020, 12:03 PM   #68
Thinks s/he gets paid by the post
 
Join Date: Jun 2004
Location: W Wash
Posts: 1,570
Quote:
Originally Posted by friar1610 View Post
I was on the VG web site a couple of days ago arranging a QCD. I double-checked to make sure I had no RMDs scheduled as I want to take advantage of the waiver. To my surprise, there was no mention of the fact that RMDs need not be taken this year. I would have thought there would have been an attention-grabbing banner or a pop-up on the page where you go to arrange RMDs.
Nath, it's VG way. No admin effort beyond what you beg for (jk)
nwsteve is offline   Reply With Quote
Old 04-03-2020, 12:06 PM   #69
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 11,413
They keep costs down by providing as little needed information as possible.

Quote:
Originally Posted by nwsteve View Post
Nath, it's VG way. No admin effort beyond what you beg for (jk)
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success – to be able to spend your life in your own way.’ Christopher Morley.
Even a blind clock finds an acorn twice a day.
Amethyst is offline   Reply With Quote
Old 04-03-2020, 12:31 PM   #70
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 12,382
Quote:
Originally Posted by Amethyst View Post
They keep costs down by providing as little needed information as possible.
I'm not a Vanguard customer, but I'd think their main reason for not aggressively proclaiming the RMD 2020 suspension is that they must not give tax advise. So, the most they could say is something like "Congress has suspended RMD's for 2020 making IRA withdrawals optional. Consult with your tax advisor to determine your best course of action. Vanguard has no recommendation regarding this tax matter."

Just my guess.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 04-03-2020, 12:35 PM   #71
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 11,413
No doubt you are correct. They could at least mention it though. "For questions about the impact of the CARES Act on your 2020 RMD, please consult a tax professional."

Quote:
Originally Posted by youbet View Post
I'm not a Vanguard customer, but I'd think their main reason for not aggressively proclaiming the RMD 2020 suspension is that they must not give tax advise. So, the most they could say is something like "Congress has suspended RMD's for 2020 making IRA withdrawals optional. Consult with your tax advisor to determine your best course of action. Vanguard has no recommendation regarding this tax matter."

Just my guess.
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success – to be able to spend your life in your own way.’ Christopher Morley.
Even a blind clock finds an acorn twice a day.
Amethyst is offline   Reply With Quote
Old 04-03-2020, 12:52 PM   #72
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 12,382
Quote:
Originally Posted by Amethyst View Post
No doubt you are correct. They could at least mention it though. "For questions about the impact of the CARES Act on your 2020 RMD, please consult a tax professional."
I certainly agree that they could do that and in the unlikely event a DIYer is unaware of the CARES Act, that would give them a heads-up.

FYI - I just went into my Schwab rollover IRA acct and looked. On the page which shows how much your RMD is for 2020 and how much have have taken so far, there is no mention of the current 2020 waiver. Also, on the page where you set up your RMD (tell them the amount you currently want withdrawn, the tax withholding, etc.) there is no mention. So, from what I can see, Schwab is also taking a low profile in appearing to be driving action or inaction on the site.

I do subscribe to several of the Schwab info-emails that contain articles or videos on various subjects. The waiver was mentioned in one of those.

Vanguard customers are generally DIYers. I'm thinking there aren't many folks doing it on their own with a low cost, on-line-only brokerage like Vanguard that are unaware of the RMD waiver. If there is someone, they should likely reconsider their DIY status since the CARES Act has been so widely publicized.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 04-03-2020, 12:53 PM   #73
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 4,172
At least they , if you inform them (VG) of what you want to do, do seem to have a way to suspend the 2020 RMDs and automatically turn them on for 2021 , like Fidelity and TIAA.

There are some companies, however, (the last on my checklist who shall go unnamed) who hear nothing , see nothing, and know nothing. I bug them every 2 days which is how long they says for them to send a message to management and get a response. No change so far.........
kaneohe is offline   Reply With Quote
Old 04-03-2020, 01:17 PM   #74
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 6,770
Quote:
Originally Posted by kaneohe View Post
At least they , if you inform them (VG) of what you want to do, do seem to have a way to suspend the 2020 RMDs and automatically turn them on for 2021 , like Fidelity and TIAA.
Can you explain a bit about this? Do you call in, or go on their site to the RMD page, or what?

My Dad may want to suspend his 2020 RMD at some point, and turn it back on automatically in 2021, so this is of interest.

Thanks.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is offline   Reply With Quote
Old 04-03-2020, 01:57 PM   #75
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 4,172
Quote:
Originally Posted by SecondCor521 View Post
Can you explain a bit about this? Do you call in, or go on their site to the RMD page, or what?

My Dad may want to suspend his 2020 RMD at some point, and turn it back on automatically in 2021, so this is of interest.

Thanks.
I called them. In one case it was an IRA and for the other a company 401K so I had to speak to 2 different reps but they seemed to be aware of what to do.....I had called a few days earlier and the 401K was unaware so I gave them a few days and they came through. Be good to verify tho I believe VG sends a letter in January advising you of coming yr RMD amount but may have to verify the autowithdrawal part independently.
kaneohe is offline   Reply With Quote
Old 04-03-2020, 02:21 PM   #76
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 6,770
Quote:
Originally Posted by kaneohe View Post
I called them. In one case it was an IRA and for the other a company 401K so I had to speak to 2 different reps but they seemed to be aware of what to do.....I had called a few days earlier and the 401K was unaware so I gave them a few days and they came through. Be good to verify tho I believe VG sends a letter in January advising you of coming yr RMD amount but may have to verify the autowithdrawal part independently.
Thank you!
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is offline   Reply With Quote
Old 04-03-2020, 03:22 PM   #77
Thinks s/he gets paid by the post
The Cosmic Avenger's Avatar
 
Join Date: May 2016
Location: Mid-Atlantic
Posts: 2,207
Huh! Fidelity seems pretty certain:

Quote:
The CARES act temporarily waives required minimum distributions (RMDs) for all types of retirement plans (including IRAs, 401(k)s, 403(b)s, 457(b)s, and inherited IRA plans) for calendar year 2020. This includes the first RMD, which individuals may have delayed from 2019 until April 1, 2020.
__________________
-Looking to FIRE in the mid-2020s, which would be our mid-50s.
The Cosmic Avenger is online now   Reply With Quote
Old 04-07-2020, 10:48 PM   #78
Confused about dryer sheets
 
Join Date: Apr 2014
Location: Rogue River
Posts: 7
This provision of the CARES Act is supposed to apply to the federal gov's Thrift Savings Plan (TSP). I have not been able to find any information as to when they will institute this provision. As it currently stands, if you change your RMD withdrawals from monthly by stopping them for the year, you are put in a new status that appears entirely bad.



If anyone finds information about when the feds will get their act together on this, I'd be much obliged.



I just received my April RMD from the TSP yesterday (post-CARES Act). A call to the TSP help-line was pleasant, but uninformative. In contrast, I was able to stop my Vanguard withdrawals.
fandk is offline   Reply With Quote
Old 04-08-2020, 05:24 AM   #79
Dryer sheet aficionado
 
Join Date: May 2013
Posts: 30
The performance of the stock market YTD underscores one point when accounts have ended the year strong: If you normally space out your RMDs in a normal year, or if you wait until later in the year, you should still figure your RMD for the year in January, and consider selling what needs to be sold then even though you will retain the cash in your account until you need to distribute it. Many people are going to be squeezed now that their assets are 20-30% below what they were on December 31, 2019. Those are the people who will not benefit from the suspension of RMDs because they need their Ds.
yclipse is offline   Reply With Quote
Old 04-08-2020, 07:44 AM   #80
Confused about dryer sheets
 
Join Date: Mar 2009
Posts: 9
I agree. QCDs are still allowed in 2020 if you are over 70-1/2.
Nightingale9 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
class of 2020? Backpacker Hi, I am... 3 10-21-2015 09:17 PM
FIRE target club - 2020 accountingsucks FIRE and Money 51 12-29-2010 05:26 AM
Retirement 2020 Conference Proceedings kcowan FIRE and Money 2 05-20-2007 09:58 PM
35 MPG by 2020? TromboneAl Other topics 6 05-08-2007 09:16 PM
Retirement in 2020? bongo2 Young Dreamers 21 01-29-2004 04:03 PM

» Quick Links

 
All times are GMT -6. The time now is 09:52 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2022, vBulletin Solutions, Inc.