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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.
OOPS..CORRECTION...ADDITION
Was just working on some financial stuff today so an update:
I take my RMD's annually (from Fidelity) and have them withhold 10% (their minimum) for taxes. I then put the RMD's in a Vanguard Wellington Fund, from which I draw a monthly check. I draw nothing from my IRA's, (other than the RMD's) but I also have a non-IRA Fidelity Fund from which I do a monthly auto withdrawal. I am 77 and my IRA's (less RMD's) are for when I get old.....LOL
An aside, Fidelity will not do an electronic funds transfer to Vanguard.
If you do not need the cash you can have securities moved from your tax deferred account to a taxable account. Thus you do not have to worry about timing the market so take it any time.
If you do not need the cash you can have securities moved from your tax deferred account to a taxable account. Thus you do not have to worry about timing the market so take it any time.
Mine comes out of the money market part of my portfolio. When I adjust allocation because of profits I can transfer money into the cash portion. The cash portion was for emergency withdrawal but non tax portfolio is more than sufficient for that now.
If you do not need the cash you can have securities moved from your tax deferred account to a taxable account. Thus you do not have to worry about timing the market so take it any time.
I neglected to say I do that but the reason for taking it in November is because that's when I get emailed the reminder.
I haven’t looked into this yet, as we still have a while before we need to take them, but I’m wondering if distributions come with fees. If so, that might influence how frequently we take our distributions. It might be worth checking.
Was just working on some financial stuff today so an update:
I take my RMD's annually (from Fidelity) and have them withhold 10% (their minimum) for taxes. I then put the RMD's in a Vanguard Wellington Fund, from which I draw a monthly check. I draw nothing from my IRA's, (other than the RMD's) but I also have a non-IRA Fidelity Fund from which I do a monthly auto withdrawal. I am 77 and my IRA's (less RMD's) are for when I get old.....LOL
An aside, Fidelity will not do an electronic funds transfer to Vanguard.
If you enter the RMD request to Fidelity online, you can set the withholding at any number from 0-100%. They are required to withhold 10% unless the recipient directs otherwise. If you want more or less, just change the number. You can also set up regular withdrawals online. I expect that is also true with physical or phone directives. You also can easily have Fidelity transfer the funds to your Fidelity non-IRA account, usually done with a day.
Fidelity and Vanguard don't play well together, and I think all transactions between them are done by physical check.
Not at that point in my life yet, but, curious to know if taking RMD in an annual lump sum requires a form 4972 and if it subjects the retiree to any different tax scheme?
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