CLOSE TO DEADLINE FOR IRA REQD. MINIMUM DISTRIBUTI... - Page 3

pattypeep · ‎06-06-2011

I take my withdrawals and plop them in our savings account.

Women and cats will do as they please, and men and dogs should relax and get used to the idea-Robert A. Heinlein

Mj12 · ‎03-09-2010

@KathyPet wrote:
@millieshops wrote:
@Annabellethecat66All the IRA money is not yours - you never paid taxes on it and now the bill is due. you owe taxes to the other taxpayers. I don't like paying taxes any more than anyone else, but if you have enough money not to need your IRA money, you're already far richer than most of this country. One of my personal beliefs is that the rich and the strong have responsibilities to those who are neither.

We don't have to actually use all the money - pay the taxes and invest the dollars you don't need or don't want to donate to a charity you support.

In the long run, your heirs might well get more because they won't have to pay the taxes on the money you leave to them as they would when they inherit deferred-tax dollars.

YEs I forgot about the inheritance rules. WHile the IRS allows a deceased spouse's IRA to be transferred to a surviving spouse that option is not available to children of those taxpayers with IRA's . WHen a child inherits a IRA from a parent there is no deferral period. THe entire IRA must be distributed in the year it is inherited and thus added to that child's taxable income. THat could create a very large tax,liability for that child when that distribution is added to a child's other income for the year.
As far as having to take a withdrawal once you are filing as a single taxpayer after a spouse is deceased you can get around that by doing as I am doing this year. IF your spouse died during the year you can file as married filing jointly that year and have a higher income limit in a lower tax bracket then a single person. SO even though I am not required to do a withdrawal yet I am taking a large chunk withdrawal so I can take advantage of the married filing jointly status.

Hi @KathyPet I have no idea what the rules are specifically; but after my Dad died, I was able to take his IRA, and open an Inherited IRA. I still had to take the RMD a few weeks ago though. ETA - I'm 46.

Annabellethecat66 · ‎03-12-2010

@millieshops I just typed in a long explanation on why I bear my teeth at even the subject of the IRS but felt it best to delete it.

I will say that it is a very sore subject with me. I pay accounts to handle all of that so I know they'll do whatever is necessary to make sure that the IRS gets as little as possible because I otherwise pay quite a fair share.

My husband died in 2004. I've been working on selling properties, etc since then. I'm almost finally done. I'm 70 and wanted to make sure my daughters didn't have to deal with it and because I'm 70 I get to keep more of it.

I don't think about what my daughters will inherit, they'll be fine. I just think about how hard my late husband worked to acquire what he did and as far as I'm concerned the less I pay in taxes of that money the better.

I think if the forms the IRS hands out for taxes were easier to understand, more people would pay their taxes.

proudlyfromNJ · ‎05-01-2010

@Annabellethecat66 wrote:
@millieshops I just typed in a long explanation on why I bear my teeth at even the subject of the IRS but felt it best to delete it.

I will say that it is a very sore subject with me. I pay accounts to handle all of that so I know they'll do whatever is necessary to make sure that the IRS gets as little as possible because I otherwise pay quite a fair share.

My husband died in 2004. I've been working on selling properties, etc since then. I'm almost finally done. I'm 70 and wanted to make sure my daughters didn't have to deal with it and because I'm 70 I get to keep more of it.

I don't think about what my daughters will inherit, they'll be fine. I just think about how hard my late husband worked to acquire what he did and as far as I'm concerned the less I pay in taxes of that money the better.

I think if the forms the IRS hands out for taxes were easier to understand, more people would pay their taxes.

I pay my taxes.

Evie2004 · ‎09-09-2010

@KathyPetgreat explanation, Kathy..when we were both working, we remember how far away 701/2 years of age sounded..whoa, here we are!

Ibby114 · ‎03-10-2010

I ahve a beneficiary IRA and have an annual RMD- I'm only 58. But I take it out and apply it to my annual Roth maximum- it's all good!

Angel_Girl · ‎03-10-2010

@Annabellethecat66 you can transfer your rmd in kind (shares) to a single or joint account. If you don't need the money it will stay invested. The cost basis will be the amount it was transferred over too in case you ever need to sell it.

Angel_Girl · ‎03-10-2010

@KathyPet. Kids as beneficiaries actually have 3 options.1) take it all 2) take it all in 5 years 3) take rmd amounts that the decedentwas taking otherwise known as stretching.

Cats3000 · ‎10-07-2013

When the government gets involved it no longer is YOUR money even though it is your money. The money has been able to grow tax deferred due to government largesse. Now the government wants "it's fair share" when it wants it and not when you finally withdraw it because you need it.

It's as simple or as complex as that.

Allegheny · ‎03-19-2010

My DH will turn 70.5 in March 2017. The way we interpret what we read was that his RMD must be taken by April 1st following the year of age 70.5. So for him that would be by April 1, 2018.

He probably will not hold off until then because are not not certain if delaying it would cause him to have to take two distributions in 2018, one by April 1 and then another by December 31. Which would be determental to our final tax return for 2018.