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Old 09-21-2019, 05:37 AM   #21
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I always take the RMD at the beginning of the year so I don't forget. It's not much, about $2,000.
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Old 09-21-2019, 06:04 AM   #22
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Originally Posted by HNL Bill View Post
Since we can't see the future, I'd just wait for a relative 'up day', and take the RMD...if October is as volatile as predicted, it might be an exciting time to try to time the market, LOL.

Or, if you plan to take the $2400 RMD and invest it then it may make sense to sell on a down day and purchase more shares when you put it back into market. HRMMM
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Old 09-21-2019, 06:21 AM   #23
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Speaking of RMDs from an inherited trust IRA. My wife has one that she just got. We paid an accountant to determine the RMD for the first year. Am I right to assume the RMD will now be the same permanently or do we need to pay an accountant each year to figure it out? Thanks!
No and NO!!!

The amount will change every year, calculated by knowing the balance of the inherited IRA at the end of business Dec. 31 of the previous year.

So, no, the RMD will not be the same permanently.

And NO!!, while it needs to be calculated every year, you do not need to hire an accountant every year to do it. However, if you are using an accountant for other stuff, he/she can figure it out for you in about 15 seconds, so it shouldn't add much to the overall bill.
If not you can ask the accountant what fraction was used to multiply the balance to arrive at last year's RMD. If it was 1/24, that was based on the life expectancy of your wife being 24 more years. Unlike a regular IRA, that does not change with the inherited IRA.

So if the first year the multiplier was 1/24, the next year would be 1/23, and the following year would be 1/22, and so on until eventually at the 24'th year it would be 1/1, and you would be emptying the IRA..

So, find out what the multiplier was last year, and all you need after that is the Dec. 31 balance, and you can figure it out.

Since you will eventually need to empty it, you might consider taking more than the RMD along the way, so you don't have a huge distribution in the later years.
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Old 09-21-2019, 06:23 AM   #24
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I have two inherited IRAs, and have them set to do their RMD in April. At the time, my rationale was the whole "Sell in May and go away" thing. Sometimes, May could end up being an off month, and I had attributed that to the "Sell in May" thing.

But, in checking my records, over the years, May is almost always a better month than April for me. But, looking closer, I'm also usually at a higher point toward the end of the year than I am in April. Looking back, the only years I've had where I've been worse off in December than April were 2001, 2002, 2008, 2011, 2015, and 2018. 2000 Might have been one of those years as well. I had more money invested at the end of the year, but back then my total was very small. I was also adding a lot of money. I had a return of -5.4% in 2000, so I lost money overall that year. But I didn't keep enough data to see how I fared from April to December of that year. So, in my case, let's say I was down 7 years. My spreadsheet now has 22 years of data in it. So, 7 years out of 22 were down. Or, about 32%. So, I'm guessing this would be a good case for moving my RMD to December.

My RMDs are pretty small. One account only has about $4100 in it. The RMDs have been running around $110-120/yr. The other has about $64K in it, and the RMD is around $1700-1800/yr. So, we're really not talking big money here.
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Old 09-21-2019, 07:13 AM   #25
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Originally Posted by jpeter1093 View Post
Speaking of RMDs from an inherited trust IRA. My wife has one that she just got. We paid an accountant to determine the RMD for the first year. Am I right to assume the RMD will now be the same permanently or do we need to pay an accountant each year to figure it out? Thanks!
I believe that the first year (year of death) the RMD is calculated on the original owner's life expectancy, regardless of date of death. Year 2 and thereafter on the beneficiary's life expectancy. Typically the year 1 RMD >> year 2 and thereafter RMD. This assumes the original owner was taking RMDs already (that is, above 70.5 years).

Your brokerage should be able to provide RMD amount as well.

https://www.irahelp.com/slottreport/...m-distribution
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Old 09-21-2019, 05:04 PM   #26
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Even if the RMD is not a large amount, what can be more valuable is the knowledge gained by seeking to maximize this IRA's value. Needing to decide when to take this RMD forces one to pay at least general attention to what is happening in the markets and the world. At low $ risk one can put to the test various strategies for maximizing the IRA's value, knowledge that can be very useful later when other, possibly larger withdrawals are needed to fund retirement.
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Old 09-21-2019, 05:42 PM   #27
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Even if the RMD is not a large amount, what can be more valuable is the knowledge gained by seeking to maximize this IRA's value. Needing to decide when to take this RMD forces one to pay at least general attention to what is happening in the markets and the world. At low $ risk one can put to the test various strategies for maximizing the IRA's value, knowledge that can be very useful later when other, possibly larger withdrawals are needed to fund retirement.
IOW, the OP should teach him/herself to time the market? Not likely.
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Old 09-21-2019, 06:03 PM   #28
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IOW, the OP should teach him/herself to time the market? Not likely.
If that works, sure, otherwise it will teach to not time the market.
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Old 09-21-2019, 06:09 PM   #29
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Timing the market once is not a good indicator that you can do it regularly.
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Old 09-21-2019, 06:12 PM   #30
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You really do not have to time the market. DW has a TIRA and a taxable account. To take her RMD, I just transfer the amount of $ in one of her holdings to her taxable account, which also gives her a new basis.
If you Google IRS Pub 590B, Table I in the Appendix will give you the divisor based on your wife's age.
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Old 09-21-2019, 06:37 PM   #31
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It's a simple calculation, just a look up table. But it gets real messy if you go low or forget. I'd do the calc once a year and add a hundred bucks for good measure.
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Old 09-21-2019, 06:38 PM   #32
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Easiest way to time this is when you see a new car you really like. That is a good time to take a withdrawal.
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Old 09-21-2019, 07:49 PM   #33
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