[mkjelenbaas]

Originally Posted by Kahuna32162

well, we're already halfway thru the 2022 tax year and RMD's have already been distributed for the last 7 months. Too little, too late.

WRONG!! RMD’s for 2022 are taken in 2023.

[retiredguy123]

Originally Posted by mkjelenbaas

WRONG!! RMD’s for 2022 are taken in 2023.

Not exactly. Unless 2022 is your first RMD, you must withdraw your RMD for 2022 by December 31, 2022. The only way you can delay the RMD into 2023 is if it is your first RMD, in which case, you can delay the RMD until April 1, 2023. But, you can wait until December 31, 2022 and withdraw the entire RMD in a lump sum on that day. There is no need to take it earlier in the year.

[RVJim]

Originally Posted by mkjelenbaas

WRONG!! RMD’s for 2022 are taken in 2023.

Mmm no you are wrong. The RMD for 2022 is calculated from the balance on 12/31/2021 and can be taken out at anytime during 2022. The amount taken is reported on your tax return for tax year 2022.

[Lindsyburnsy]

Of course COVID pandemic had nothing to do with it.

Originally Posted by rsmurano

Why should I have to support reckless spending? We shouldn’t be spending or try to spending as much as we are especially while going into a recession. You have to ask, what got us into this high inflation/recession era? It’s all the reckless spending!

[Lindsyburnsy]

I will never vote for anybody who happily has swastika waving fans as their most loyal base cheering them on. Isn’t this exactly what our fathers fought against?

QUOTE=Black Beauty;2118747]get both Biden and Trump to not run in 2024. Term limits too[/QUOTE]

[Boomer]

Originally Posted by Michael G.

HR 8331 would waive required minimum distributions for the 2022 tax year. That’s a nice way of saying Uncle Sam would not force older folks to withdraw more money than necessary from their retirement accounts this year.

Contact your state Representative.
Daniel Webster in Marion County

I am not clear on this because the wording of the above quoted post seems to be unclear.

"It depends on what is is."

A few posters in this thread are commenting that they have already paid their 2022 RMD or most of it, so then what? A can of worms? The expense of rebates in some form?

What "is" the meaning of 2022? What is the meaning of "this" year?

The RMD is based on the IRA balance on December 31 and paid in the year following.

Therefore, surely, what this bill is saying is that no RMD would be due in 2023 -- based on the 2022 end-of-year balance.

That is the only way this idea could make sense.

And another thing that we retirees need to be clear on:

Sure they act like they want to keep us retired voters happy -- but -- anyone who is thinking through what some of them would really like to do to us knows that highly publicized "promise" (executive order) to "improve and protect Medicare" was a Trojan Horse.

It was a Trojan Horse because........

The plots to privatize Medicare and also Social Security have been in the works for a long time, so claiming to protect them all depends on what that "protection" is.

Our personal lives are affected every day by who we decide to give power over us. We have to be careful to look beyond the surface to what we could be giving up if privatization is railroaded through. That could happen in the next few years, so be careful what you wish for. Lobbyists have deep pockets and some in power are for sale.

Many people are caught up now in emotional responses that are being so effectively stoked by power-grabbers. But hidden in all that in-our-faces surface stuff -- private healthcare company wolves are drooling at the door.

Cassanda Boomer

PS: Besides, how likely is it that cutting us loose by privatizing Medicare and SS would actually save the government money. They would just think they had more to spend. We who are socially liberal and fiscally conservative get more concerned every day.

[retiredguy123]

Even if you have already withdrawn your RMD for 2022, you don't file your tax return until April 15, 2023. So, it is possible that you could redeposit the RMD money back into your IRA before you file your 2022 tax return.

[bp243]

Originally Posted by retiredguy123

Even if you have already withdrawn your RMD for 2022, you don't file your tax return until April 15, 2023. So, it is possible that you could redeposit the RMD money back into your IRA before you file your 2022 tax return.

Now that's an interesting idea. Since the market is worth less today, that money could be reinvested and hopefully gain a greater return if the market continues to grow as it has been. Do you know if this bill has been finalized or is it still being considered?

[retiredguy123]

Originally Posted by bp243

Now that's an interesting idea. Since the market is worth less today, that money could be reinvested and hopefully gain a greater return if the market continues to grow as it has been. Do you know if this bill has been finalized or is it still being considered?

It is still being worked on. But, I assume that, if it applies to the 2022 RMD, you will be able to redeposit money that you have already withdrawn to take advantage of the law.

[Fltpkr]

Originally Posted by Michael G.

HR 8331 would waive required minimum distributions for the 2022 tax year. That’s a nice way of saying Uncle Sam would not force older folks to withdraw more money than necessary from their retirement accounts this year.

Contact your state Representative.
Daniel Webster in Marion County

This thread seems to have been diverted into a budget debate, but returning to the original post, whether to take advantage of this gets a bit complicated and tedious (at least for my brain).

If the bill is passed, and if it applies to those who are already taking RMDs and if it allows 2022 amounts already taken to be rolled back into the tax deferred account, wouldn’t one need to consider where the money will come from to pay back the amount of RMD already taken? E.g., If you have to sell investments from taxable investment accounts to come up with the rollover cash you need (assuming you don’t have that much cash sitting around), you will be selling into a very down market to pay back RMD amounts perhaps taken in a higher market - maybe a much higher market. Also, if the investments you sell still have gains, you will be paying federal gain tax on those gains.

The benefit is that you won’t have to pay ordinary income tax on your RMD in 2022, and the roll over money that you pay back presumably will be going back into the tax-deferred account in a down market, so you are buying more stock with the rollover money. So, I think, the sale and purchase in the current down market may wash out, and you would need to weigh the gain tax now paid on the taxable sale against the ordinary income tax on the RMD saved in 2022. However, that ordinary income tax will eventually have to be paid in a future year and maybe at a higher tax rate. I would need to think thru this very carefully to see what the benefit would be. This is all probably too detailed, sorry about that.

[retiredguy123]

Originally Posted by Fltpkr

This thread seems to have been diverted into a budget debate, but returning to the original post, whether to take advantage of this gets a bit complicated and tedious (at least for my brain).

If the bill is passed, and if it applies to those who are already taking RMDs and if it allows 2022 amounts already taken to be rolled back into the tax deferred account, wouldn’t one need to consider where the money will come from to pay back the amount of RMD already taken? E.g., If you have to sell investments from taxable investment accounts to come up with the rollover cash you need (assuming you don’t have that much cash sitting around), you will be selling into a very down market to pay back RMD amounts perhaps taken in a higher market - maybe a much higher market. Also, if the investments you sell still have gains, you will be paying federal gain tax on those gains.

The benefit is that you won’t have to pay ordinary income tax on your RMD in 2022, and the roll over money that you pay back presumably will be going back into the tax-deferred account in a down market, so you are buying more stock with the rollover money. So, I think, the sale and purchase in the current down market may wash out, and you would need to weigh the gain tax now paid on the taxable sale against the ordinary income tax on the RMD saved in 2022. However, that ordinary income tax will eventually have to be paid in a future year and maybe at a higher tax rate. I would need to think thru this very carefully to see what the benefit would be. This is all probably too detailed, sorry about that.

If you withdrew money from an IRA this year, bought stock, and then sold it a few months later, I don't think you will be having much of a gain. But, if you do, that would be a taxable gain, since it wasn't inside of your IRA when you bought and sold it.

[Boomer]

If this happens, it seems like it would work better, with a lot less hassle, if the waiving of the RMD could be for what would need to be paid next year based on 2022. That would allow people to plan better.

Someone mentioned about the possibility of having to sell stock to pay the RMD if you do not have the cash available inside the IRA.

That can be avoided by letting cash accumulate inside the IRA, like from capturing a really good gain with a sell when the time is right and letting the profit sit there in cash for a while — or by not reinvesting dividends so they can pile up in cash and create a moat around stocks you do not want to sell at the time - - or maybe never sell.

It can feel kind of painful to see cash in an IRA not getting any return, but you can get used to it if you think of it as a moat around your stock and also as sideline money if you see an opportunity to buy when a good stock is getting pounded through no fault of its own. And if you decide to use that cash to buy a bargain, don’t use it all. Leave enough in the moat to pay the RMD.

Btw, if you do decide to buy a stock that looks like a bargain, I have a perfect piece of advice for you: Always buy it the day after I do and I can pretty much guarantee it will go down more on that day.

Anyway, never let yourself get into the position of having to sell stock to pay taxes. Build that moat.

Boomer

[retiredguy123]

I never purchased stocks in an IRA. I always had a balanced portfolio of stocks and bonds, with bonds inside the IRA and stocks outside of the IRA. That is because bonds generate interest income that is always taxed at your ordinary income tax rate, but stocks generate capital gains income that is taxed at a lower capital gains rate, but only if it is outside of an IRA. So, you get a better overall tax advantage by keeping the stock investments outside of the IRA. That assumes that you have enough investment assets to maintain an IRA and a non-IRA investment portfolio.

[Boomer]

Originally Posted by retiredguy123

I never purchased stocks in an IRA. I always had a balanced portfolio of stocks and bonds, with bonds inside the IRA and stocks outside of the IRA. That is because bonds generate interest income that is always taxed at your ordinary income tax rate, but stocks generate capital gains income that is taxed at a lower capital gains rate, but only if it is outside of an IRA. So, you get a better overall tax advantage by keeping the stock investments outside of the IRA. That assumes that you have enough investment assets to maintain an IRA and a non-IRA investment portfolio.

You give good advice. I just have not been into bonds for a long time — since not long after rolling over the tax deferred mutual funds from the employed days into self-directed IRAs……..

I have been interested in stocks for a long time, but never really dug into bonds much.

I used to use bond mutual funds. Probably should sometime again.

Boomer

[notme6w]

Originally Posted by Michael G.

HR 8331 would waive required minimum distributions for the 2022 tax year. That’s a nice way of saying Uncle Sam would not force older folks to withdraw more money than necessary from their retirement accounts this year.

Contact your state Representative.
Daniel Webster in Marion County

That would be nice this year with the numbers down