# Planning for a Mandatory Required Distribution.



## Knight (Dec 31, 2019)

I'm way past that planning. Maybe some will find this useful.

You should know what amount you have that will require the MRD. 

Free and really informative is the MRD calculator at Fidelity.

https://gpi.fidelity.com/ftgw/interfaces/rmd/#/rmdform
Once you know what amount you will be federally taxed on Googling this for a chart works. 

New federal tax brackets 2020   


Once you get a handle on what you expect to have as an income then you can look into the impact state taxes if any & tax on Social Security will end up leaving you as a yearly income.


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## Marlene (Dec 31, 2019)

both of my investment accounts have calculators on their websites, and the folks at their help desks were extremely good at helping me get it all set up.


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## StarSong (Dec 31, 2019)

Interesting, @Knight, thanks for the info.


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## gennie (Dec 31, 2019)

I have an acquaintance who considers this 'found' money.  

Of course, she never had a firm grip on reality in many areas, not just financial.


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## Catlady (Dec 31, 2019)

I have my IRA with Vanguard, they let me know how much is my minimum RMD.  I have the RMD deposited in January into a separate savings account and that account pays for my monthly utilities.  I have my RMD match whatever is my estimate for the utilities for the year if the estimate is higher than my minimum.  By utilities I mean electric, gas, water, phone and internet, usually it's about $2500.


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## oldmontana (Dec 31, 2019)

Knight said:


> I'm way past that planning. Maybe some will find this useful.
> 
> You should know what amount you have that will require the MRD.
> 
> ...



I also use a site and come January 2nd I will transfer that amount to our joint account...both accounts with TD Ameritrade...I do it  ... electronically.....done in a second.


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## fmdog44 (Jan 1, 2020)

I have one with Vanguard and one with formerly a company known as Voya. They do all the calculations and take out the taxes.


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## Knight (Jan 1, 2020)

fmdog44 said:


> I have one with Vanguard and one with formerly a company known as Voya. They do all the calculations and take out the taxes.


The more access for anyone expecting to draw on their MRD the better. Do you have a direct link to Vanguards information regarding MRD's ?


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## oldmontana (Jan 1, 2020)

Knight said:


> The more access for anyone expecting to draw on their MRD the better. Do you have a direct link to Vanguards information regarding MRD's ?



Not from Vanguard but it works.

https://www.investor.gov/additional...ools/required-minimum-distribution-calculator
REQUIRED MINIMUM DISTRIBUTION CALCULATOR
Per IRS regulations, after reaching age 70½, you are generally required to start withdrawing money from a traditional 401(k) or IRA. Use this calculator to approximate your required minimum distribution based on your age and the value of your accounts.
Note:  If your spouse is more than ten years younger than you, please review IRS Publication 590-B to calculate your required minimum distribution.

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My problem is how I will invest the money.   With stocks high and CD rates very low I will be very careful and take my time....there are always good stocks


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## Catlady (Jan 1, 2020)

oldmontana said:


> My problem is how I will invest the money.   With stocks high and CD rates very low I will be very careful and take my time....there are always good stocks


I use my RMD to pay for the utilities. I let any money from sales and dividends accumulate at Ameritrade waiting for the inevitable bear market and then buy on sale.


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## Creek Pirate (Jan 2, 2020)

This is new! We get to keep our money for a little while longer!

Your *RMDs* Will Start *age Age 72*, not 70 ½
Staring Jan. 1, 2020, the new bill pushes the *age* at which you need to start withdrawing money from your traditional retirement accounts to *age 72* from *age* 70

https://401kspecialistmag.com/rmd-age-jumps-to-72-in-2020-after-secure-act/


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## retiredtraveler (Jan 3, 2020)

Creek Pirate said:


> This is new! We get to keep our money for a little while longer!
> 
> Your *RMDs* Will Start *age Age 72*, not 70 ½
> Staring Jan. 1, 2020, the new bill pushes the *age* at which you need to start withdrawing money from your traditional retirement accounts to *age 72* from *age* 70
> ...


Yes. I was going to post this but you beat me to it.....


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