Quantcast
Channel: Bogleheads.org
Viewing all articles
Browse latest Browse all 4514

Investing - Theory, News & General • Distribution intended to be RMD but not "marked" as such

$
0
0
I think Jebmke nailed it when he said that my wife has only done step one, selling an amount equal to the RMD and putting the proceeds in the settlement fund -- so it hasn't actually left the IRA account. She'll probably wrap it up tomorrow and I would expect the website to ask if that is an RMD.
All distributions (that aren't rolled over to another IRA or converted to a Roth) apply towards your RMD - there is no reason for the website to ask and it isn't reported any differently on your 1099.
By definition, the first dollars removed from the IRA each year are the RMD until the RMD is satisfied. This is true even if the money is inappropriately rolled over to another IRA or converted to Roth. (Those transactions need to be un-done as penalties will apply if not un-done.)

There is nothing to 'mark'.
I agree.

Statistics: Posted by celia — Thu Sep 26, 2024 9:01 pm — Replies 12 — Views 497



Viewing all articles
Browse latest Browse all 4514

Trending Articles