Community Chat

[BirkiLady]

I'm 72 and plan to live many, many more years. Skipping a year of RMD's makes me very happy. I resent the government telling me how to handle those investments.

It was a pleasure this year to know my sister was young enough to take advantage of the new age (70) of having to begin paying taxes on her RMD's.

If you are questioning the decision, talk with your broker and tax preparer who know your situation. They will be able to advise you far better than strangers on a chat forum. Best wishes on getting professional answers.

[KaySD]

The reason there are RMDs is that you were able to defer taxes on that income for years so you could save to retire--but you still owe taxes on that income, so you have to start taking out a bit every year and adding it to your taxable income.

To me, there's nothing to resent in this, since you've already benefitted from the deferral all along. In fact, it's a great program for anyone who is lucky enough to have it. Most employer pensions and individual IRAs and annuities work the same way.

Whether you actually end up paying income tax on it is determined by your other income and deductions each year, as you know.

So if it won't hurt you in the long term to take it anyway, go ahead! It IS nice to have the choice this year.

[EatWell]

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@itsmagic wrote:

I understand that per the CARE Act we aren’t required to take a RMD this year.  I’m kind of wavering though.  We had earmarked it (before the virus came along) for a special purchase this year which we can put off. But on the other hand I think about how short time is now (my husband is in his 70s and I’m almost 70) and should we just enjoy it and not wait.  Is anyone else wavering on their RMD this year?

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@itsmagic 

Consider you and your husbands current state of health, if you have medical issues, and heaven forbid, how much longer you think or your Dr. thinks you or your husband have.

Discuss tax consequences RMD deferral with your financial adviser. Your tax bracket.

If your planned purchase is something that will make your quality of life better, and make you happy,  then make that special purchase.

I myself am deferring my 2020 RMD.  I do not resent taking the annual RMD because I have benefitted financially from years of tax deferred income , good stock investments, and dividend reinvestment, when my tax bracket was much higher than it is now.   👍

Good luck.

“Stay safe. Stay home.”

~Put food in front of me, and I will eat it.~