How do you take your IRA RMD's, Annual or Monthly? (raise, taxable)

[WellShoneMoon]

I take mine quarterly, except that the final quarter's withdrawal is at the end of November, rather than the end of December. I just want to make sure it gets withdrawn well before the end of the year, to avoid any hiccups with IRS.

[old_cold]

Once a year, in November so there's time to fix an ooops. I'd rather whatever is in there keeps earning

[Rakin]

Do you qualify under the new law that says you do not have to take RMD's until age 72 now ?

No longer 70.5.

[FiveLoaves]

After much deliberation, I was all set to start taking my RMD in monthly installments starting this January. I liked the way my Pension and SocSec checks are direct deposited as "paychecks" and Fidelity set up this RMD deposit nearer to the end of the month to smooth the cash flow.

But my birthday put me right in that age 70 - 72 window. I called FIDO with but a week to spare and cancelled. We don't really need this money right now, I'll let it grow for another year.

In the OP's case, should probably take the money now.....it's your money after all. Take the first year in a lump sum before April -- give the IRS enough estimated payment to cover this full year. Then start taking the second RMD as a monthly paycheck. Just my opinion.

[johngolf]

I take my RMD's annually (from Fidelity) and have them withhold 10% for taxes. I then put the RMD's in a Vanguard Fund. Fidelity from which a draw a monthly check. Fidelity will not do an electronic funds transfer to Vanguard.

[oldsoldier1976]

Originally Posted by johngolf

I take my RMD's annually (from Fidelity) and have them withhold 10% for taxes. I then put the RMD's in a Vanguard Fund. Fidelity from which a draw a monthly check. Fidelity will not do an electronic funds transfer to Vanguard.

Good to know if and when I get to that point.

This is actually a great question and the answers are varied and informative. But for me with 10 more years to go before RMD's actually kick in we can just sit back and relax and enjoy our retirement.

[jiminnm]

We don't take our RMDs on any fixed schedule, but generally in the last 3-4 months of the year. We make substantial QCDs and I wait until I have have a reasonable estimate of our taxable income and use the RMDs for all tax withholding.

[mlb]

We’re in our mid-60’s. Not yet taking RMDs.

But we are applying for Covered California and need to show that our income is low.

Once we are accepted we will take a distribution from the 401K - and will continue to do that end of year. Yearly - not monthly.

Our big bills - property taxes and insurance come at the end of the year..

[fluffythewondercat]

We're 66 and 69. No idea how the tax-deferred funds will be divided.

But I don't need a crystal ball to tell me that had we stayed together, we would have waited until the absolute last moment to take an RMD, panic, call every tax advisor in town and insist on being seen immediately, find all the information too much to take in at once, come home and say "Screw it, we'll pay the penalty. Let's go to Cheesecake Factory!"

"Because that's how the dysfunctional do." -- ze frank

[mlb]

HAH!! But golly - a 50% penalty is a huge price to pay.

https://www.investopedia.com/article.../05/011005.asp