Required Minimum Distribution 2020

itsmagic · ‎08-08-2011

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?

granddi · ‎03-16-2010

Talk to you financial advisor. See if you have any opitons for assessing your money without the taxes incurred by withdrawal

Allegheny · ‎03-19-2010

The last time we discussed it, my husband is considering waiving. His is not substantial and we really do not need it. I view it this way, if you had planned on taking it to finance a special project then the Care Act waiver should make no difference.

The recommendation to speak with your financial advisor (if you have one) is excellent. He/She might know of benefits to not taking it now or vice versa.

Still Raining · ‎03-30-2014

I seem to hang out with tax folks, and they are all atwitter with this.

There can be cases when the credits/deductions/brackets are just right so the amount will be "tax free". Then withdrawing an specific amount would be appropriate.

True ever year and fun for retired types.

BlueFinch · ‎08-31-2019

@itsmagic Yes, I'm wavering, too, while crunching numbers re: pros and cons. I'm just glad the choice is ours, this year. I resent the RMDs.

Do what's best for you and your finances. If it's been planned and earmarked for this year, I don't see any reason why you'd decide to wait.

If this 'special' purchase will bring joy, or benefit you, it may be just what you need during these bleak times.

However, we're burning through this year and it'll be 2021 before we know it. So, after NY, we will have a better picture of the direction we'll be heading on many levels. We may find that saving on taxes this year was a bonus we should have taken.

I think I'll hold out, since I was planning for some home improvements, but I don't want people working around my home during the pandemic, anyway, unless it's an emergency.

Whether we take the RMD this year, or not, will depend on each individuals needs, or wants, instead of being forced to comply. I sure hope I didn't confuse you more. There's no concrete answer right now. Good luck.

Mom2Dogs · ‎03-09-2010

@itsmagic If is something you really want/need...I'd go ahead a do it.

We always roll the money back into our account, we have yet to need it...your financial advisor should be able to help you.

Isobel Archer · ‎04-04-2015

I'm no financial expert, but I strongly suspect - due to the shutdown and the riots - we are going to see substantial tax increases at the state and local level - and possibly if the outcome is such - at the Federal level.

"Tax free" may be a thing of the past.

millieshops · ‎03-09-2010

@BlueFinch I also don't love the RMD's, but I know they are price we pay for not paying taxes for years and years on the value of our IRA's.

BlueFinch · ‎08-31-2019

@millieshops wrote:
@BlueFinch I also don't love the RMD's, but I know they are price we pay for not paying taxes for years and years on the value of our IRA's.

I'm not suggesting it should be tax free income. I resent that there's no flexibility.

Maybe I'd like to skip a year and take twice the amount the second year. It would significantly increase my taxes for that year, but it would be my decision and perhaps better fit my own needs.

It's not going anywhere. They eventually WILL get their taxes, one way, or another.