Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
I can't say what is typical, but after reading your post, I looked to see that Fidelity has already calculated the 2019 RMD for my Roth IRA.
My next step is to check Fidelity's figure. It did make a mistake in a prior year (they put down 4x the correct amount, or something like that). So regardless of when you get a figure from the brokerage, it's still up to you to make sure it's correct.
Also, it is possible for the figure to change as late as Oct 15. That's because there are ways to change your 2018 end of year IRA balance up until then. You could do a 60 day rollover, taking the money out Dec 15th (reducing the Dec 31st balance), and then putting the money back in January (restoring the original year end balance).
You could make a 2018 contribution until April 15. You could take a 2018 Roth contribution and recharacterize it as a traditional IRA contribution all the way into October. (That's different from undoing a Roth conversion, which is no longer allowed for the previous year.)
@Derf 1. Do you have IRA's at more than one vendor? 2. Have you received a notice about RMD from a vendor and/or checked the FAQ at your vendor's web site?
>>>This from a Forbes article: The financial firm holding your IRA will likely let you know an RMD will be due and send you a 1099-R form reporting the distribution. The company will also withhold 10% of the payout as taxes for the IRS unless you tell it to withhold more or less. >>>Does the above statement imply that whomever holds one's IRA account will calculate and perform an automatic withdraw of the RMD amount; IF no action has been taken by the account holder to perform their own withdrawal? I can not satisfy the answer to my question, as I initiate the RMD electronic withdrawal directed to another account.
@msf, you noted: "I looked to see that Fidelity has already calculated the 2019 RMD for my Roth IRA." Did you intend to write "Roth IRA"?
Thus the handling of my RMD may not be representative (though I suspect it is). My IRA divisor needs to be looked up only once, while for traditional IRA RMDs, a table has to be consulted each year for the value of the divisor.
Regarding automatic withdrawals - the custodian can't do that without your permission, because it is your option to take RMDs from whatever institution or institutions you want.
@msf Agree, regarding an automatic withdrawal by a custodian; and my thought for the Roth IRA RMD was the only conclusion I had obtained........being an inherited Roth. Thank you for your time with this. The thread may benefit others here.
Comments
My next step is to check Fidelity's figure. It did make a mistake in a prior year (they put down 4x the correct amount, or something like that). So regardless of when you get a figure from the brokerage, it's still up to you to make sure it's correct.
Also, it is possible for the figure to change as late as Oct 15. That's because there are ways to change your 2018 end of year IRA balance up until then. You could do a 60 day rollover, taking the money out Dec 15th (reducing the Dec 31st balance), and then putting the money back in January (restoring the original year end balance).
You could make a 2018 contribution until April 15. You could take a 2018 Roth contribution and recharacterize it as a traditional IRA contribution all the way into October. (That's different from undoing a Roth conversion, which is no longer allowed for the previous year.)
1. Do you have IRA's at more than one vendor?
2. Have you received a notice about RMD from a vendor and/or checked the FAQ at your vendor's web site?
>>>This from a Forbes article:
The financial firm holding your IRA will likely let you know an RMD will be due and send you a 1099-R form reporting the distribution. The company will also withhold 10% of the payout as taxes for the IRS unless you tell it to withhold more or less.
>>>Does the above statement imply that whomever holds one's IRA account will calculate and perform an automatic withdraw of the RMD amount; IF no action has been taken by the account holder to perform their own withdrawal?
I can not satisfy the answer to my question, as I initiate the RMD electronic withdrawal directed to another account.
@msf, you noted: "I looked to see that Fidelity has already calculated the 2019 RMD for my Roth IRA."
Did you intend to write "Roth IRA"?
Thus the handling of my RMD may not be representative (though I suspect it is). My IRA divisor needs to be looked up only once, while for traditional IRA RMDs, a table has to be consulted each year for the value of the divisor.
Regarding automatic withdrawals - the custodian can't do that without your permission, because it is your option to take RMDs from whatever institution or institutions you want.
Agree, regarding an automatic withdrawal by a custodian; and my thought for the Roth IRA RMD was the only conclusion I had obtained........being an inherited Roth.
Thank you for your time with this.
The thread may benefit others here.
Question #1 Yes, two vendors. Three Ira's.
" #2 No &no.
Snowbirds as of 12/30/19
Derf