[bob47]

I've been using the concept of the protective "cash moat" but this year the moat is too small. Some decisions will have to be made. I appreciate the discussion.

[BlackHarley]

Or....when Uncle Sam comes looking for your RMD $$, use the phrase from the well respected\comedian financial guru Steve Martin and simply say..."I forgot"....lol.

[Villages Kahuna]

Whatever you do, make sure you take the RMD prescribed by the IRS. If you choose not to take the withdrawal and debate the issue with the IRS, it will be VERY expensive. The penalty tax rate for failing to take the RMD and paying tax on the withdrawal is a 50% tax as I recall.

Withdraw the RMD and debate with the IRS later. If you’re right, you’ll get a refund.

[Haggar]

Originally Posted by LuvtheVillages

It does not matter whether you itemize or not. When you donate a Qualified Charitable Distribution, it counts toward your RMD, and does not count as income to you.

Be sure that the funds go directly from your retirement account to the charity. You must not receive the funds. Simply call your charity and let them know that the funds are on the way. If you donate regularly, (perhaps to your church or temple) you can satisfy your annual tithe this way.

It does matter! Doing a Qualified Charitable Donation (QCD) lowers your taxable RMD.
This reduces your adjusted gross income. A lower AGI may reduce the % of Social Security taxed, may affect your medicare premium or if you can deduct medical expenses (if you itemize) will increase that deduction since medical expenses are reduced by 7.5% of AGI.
Second if you do not itemize your charitable contributions do not reduce your taxable income since they are lost.

In kind distributions from IRA are distributed at the then market value of the stock. The receiving account resets the tax basis to the value of the stocks when distributed.

Lastly - yes - you can take an RMD based upon the value of your accounts at the end of the previous year from one account.

[Altavia]

Appreciate the discussion, very helpful for my understanding.

Would it make sense to spread the distribution over the year to "average" market fluctuations?

[dewilson58]

Originally Posted by Robbie0723

Appreciate the discussion, very helpful for my understanding.

Would it make sense to spread the distribution over the year to "average" market fluctuations?

How much is your RMD?? 4%?? Spreading 4% over 12 months to average the market. What the real impact of this process??

If the market changes 10%: take 4% of 10% and divide by 2 (gross weighted average impact).

[Skip]

Be careful with that RMD table. When you look at the age column, it's NOT your current age! It's the age at the END OF THIS YEAR (12/31/22). Many people end up UNDER-DISTRIBUTED and get hit with a penalty when they use the wrong line. The directions are not that clear when you look for your age on that chart.

Skip

[Smalley]

Originally Posted by davem4616

the following year your RMD will be lower due to the market decline...so maybe between the two years your RMD's will even out if the tax bracket stays the same for you

you're going to have to take the RMD...what you do with the money once Uncle Sam get's his cut is up to you

the comment about the charity might be a way to dodge the tax...but I'd check with your tax advisor to make sure that applies even if you do or don't itemize...the tax rules seem to change from year to year...

The Qualified Charitable Contribution is available to you no matter if you itemize or don't. The money leaves your tax-deferred account pre-tax.

[Babubhat]

If the distribution is material people are not getting to the right result. Anyone can form a 501c3 with little effort and government oversight. The wealthy love this combination. Please don’t debate the merits. 501c is an enormous legal “loophole”. Use it to your benefit if you like

[dyoder66@aol.com]

Make sure you are using the most current required percentage for your RMD

[rustyp]

Originally Posted by BlackHarley

Or....when Uncle Sam comes looking for your RMD $$, use the phrase from the well respected\comedian financial guru Steve Martin and simply say..."I forgot"....lol.

Oh you really don't want to do that. You will still owe the RMD and believe it or not a 50% penalty as a fine.

[retiredguy123]

Consolidate all of your IRAs and/or other retirement accounts with a good custodian, like Vanguard, and they will calculate your RMDs for you.

[mkjelenbaas]

Originally Posted by bob47

2022 required minimum distributions for IRAs got locked in at the end of 2021 when markets were high. It's not hard to imagine markets will still be lower at the end of 2022. Are there any suggested strategies in this situation to prepare for the distribution? Maybe in kind distributions from the IRA to the brokerage account is the best strategy?

Put your head in the sand!!

[nsantelli]

I take RMD out quarterly, roughly 25% at a time. Also do charity giving using QCDs quarterly. I use QCDs for 90% of my charitable giving. In those years when we take standard deductions, using QCDs saves on our taxes. Consult your tax advisor on why that works. If he or she can’t tell you, get a new advisor.

[Topspinmo]

Why wouldn’t lost be tax deductible? There going collect taxes on withdrawals?