Money & Economics

Yep. I wish I had known then what I know now. Except for matching contributions, IF they’re substantial enough, I would have quit the 401K farce many years ago and funded a Roth much sooner.

I think I’ll be able to squeak by in the 12% bracket with my current plan for 6 years of drawdowns, but after that the RMDs will kick my ass.

I may tire of the game and just take all that’s left in the 401K sometime in the next few years, take the one year hit and move on.
 
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I wonder who told ADP to cut off the Fed?

 
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That fire needs some more gasoline. Here, hold my beer…

 
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RMD question, if IRA money is tied up in Brokerage CDs, or an Annuity, how do you draw RMD? The wife has 3 more years before RMD kicks in, though it may change to 74 or 75, hopefully...

I know with my individual Muni Bonds, I have to sell full or partial bonds to withdrawal money...but they are not tied up in an IRA.
 
David L said:
RMD question, if IRA money is tied up in Brokerage CDs, or an Annuity, how do you draw RMD?
Click to expand...

For CDs... Sell enough CDs to fund to RMD... at Fidelity:

https://www.fidelity.com/fixed-income-bonds/cds

Unlike a bank CD, a brokered CD can be traded on the secondary market, meaning it doesn't necessarily have to be held to maturity.

Purchases (and sales) of secondary CDs incur a trading fee of $1 per CD (1 CD = $1,000 par value).

Secondary CDs may be priced at, above, or below par value. As a result of this, your overall return may be higher or lower than the coupon rate of the CD.


You can plan your CD maturities so that funds for RMD requirements will be available without selling CDs in the secondary market. If you do need to sell CDs below par, you will benefit from higher prevailing interest rates when you reinvest the RMD funds :)
 
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