Required Minimum Distirbutions and CV

kitty60 · ‎03-13-2010

I have a concern with the impact of CV on the required minimum distribtuions that must be taken from IRA's for seniors who have reached a certain age. I have yet to hear of any relief as many may need to sell securities to meet this distribution. I do think the RMD's should be waived for this year and have contacted my congress person. Not all seniors need this money for daily expenses and would prefer to sell into a better market.

Relief is being considered for workers and I think the same needs to be done for seniors.

Loves Purple · ‎09-09-2014

I’m 70 1/2 but the RMD rules changed this year and the new mandatory withdrawal age is 72. That was a relief to me. I hate being told I have to withdraw my savings, how much and pay taxes on it when I don’t want to.

tobes · ‎08-02-2010

@kitty60 I am not sure what you mean by selling securities. I know you can take the RMD and purchase interest free municipal bonds to augument your living expenses.

kaydee50 · ‎02-07-2011

@tobes If you are required to withdraw a certain amount to meet the RMD and the account is all in stocks and bonds--no cash--then you would be forced to sell in a market that is down 30%. And since the amount that needs to be withdrawn in 2020 is based on the value of the account as of December 31, 2019, the original poster makes a good point.

meem120 · ‎03-09-2010

Yes, I received a letter yesterday that the age was changed to I believe 72

novamc1 · ‎07-02-2015

As far as I'm concerned, the OP makes an EXCELLENT point about a situation that really gets my dander up whenever I think about it.

Whatever amount we have to withdraw and pay out in taxes, the less remains in the account to perhaps "come back" by growing in the future. This creates double-whammy loss both ways as long as the stock market is down.

It's a real lesson in the value of having a highly diversified portfolio.

Highlands72 · ‎06-04-2016

RMD change to age 72 applies ONLY to those who had not yet reached age 70-1/2 by the end of 2019.

If you are age 71, for example, you are required to continue under the old rules.

BirkiLady · ‎02-22-2015

Frankly, I dislike having the government require me to take distributions! At 72, I've been taking them for several years, paying taxes on that money and simply reinvesting it. I don't need it to live on and wish it could stay where it was . . . left untouched and without being taxed. Now, I'm paying double (or far more) taxes on money I prefer to leave to next generations.

Money screams; wealth whispers.

Highlands72 · ‎06-04-2016

@BirkiLady wrote:
Frankly, I dislike having the government require me to take distributions! At 72, I've been taking them for several years, paying taxes on that money and simply reinvesting it. I don't need it to live on and wish it could stay where it was . . . left untouched and without being taxed. Now, I'm paying double (or far more) taxes on money I prefer to leave to next generations.

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The SECURE (yes, that is an acronym) Act also made what I consider very unfavorable changes to the non-spouse beneficiary regulations.