Honestly, Erin is like having your very own financial advisor on TH-cam. She is really the best out there. Thank you! Please always include the Outtakes. lol. Love them.
Love how you broke down the new RMD rules in plain English. With so many changes lately, it’s easy for seniors to feel overwhelmed. Thanks for helping clarify this for the community!
The grace first year / possible double dip RMD with its bump in income is very important information. This may have caught me both in a higher tax bracket but also in a higher IMRAA bracket for that second year. Much thanks.
Thanks, Erin. I get something new from every one of these videos. Still have 7 years before I need to start taking the RMD's but I will have a 100% understanding of what to do. Thanks for the outtakes they always make me laugh. It also reminds us of how hard it is to put them together.
Hi Erin, another great video! I'm started performing my Roth conversion in December of 2024, and plan to complete them over an 8 year period. This will be prior to my retirement, because I would rather pay the taxes now while I'm working, rather than paying them when I'm retired and on a fixed income. I also believe the current tax brackets (the lowest in my history) will be extended.
Hi Erin, this was another very good video and discussion. Funny and very animated out takes - say hello to Betty for me 😉 I have been dealing with RMDs for the last 5 years. My last RMD for this year is being processed today so now I can do my initial Roth Conversion for 2025. Thanks for all the ongoing content you provide on your channel. It is all very helpful to your followers. Have a blessed week and I'll see you on the next one. Larry, Central Valley, Ca.
Thanks for all your easy to understand videos. I constantly explain these to my wife and 4 adult children should something happen to me as they can understand our finances and theirs. You pack a lot of content in these!
This is a great video! I'm 52 so I didn't think there was much for me to worry about yet, but the info on the inheritance is very important for me. I had no idea how that works.
Super informative video Erin! I could totally believe you are AI without the bloopers! 😂You never seem to get older and you deliver financial information so well!
I inherited a Traditional IRA from my father in 2016, and I chose the stretch option back then. That was before the ten year rule was implemented. I have seen the IRA grow along with the markets and it will be enough to cover most of our household expenses until we are in our 80's possibly.
For some reason hubby & I knew about RMD’s but didn’t realize until fairly recently that the amounts changed yearly based on actuarial tables. Whoa Nelly!!! What a shock!! We’re in the early years of implementing a series of Roth Conversions as a result.
You are a really good, clear speaker. I really like that you don't misspeak or backtrack on topics. I do have one suggestion and that is maybe you would consider not including things or calculations that no longer apply. Maybe just say "the current rules are ...". That would help keep things simple. But that's not a criticism but rather an idea because if everyone was as clear as you are it would be really great!
Best AI generated bloopers ever! So glad to see it getting the hands right, and the truly lovely shade of lipstick… 😃 - don’t worry, we will keep your secret that you aren’t AI, but instead are a westworld style robot programmed to seem adorably awkward in those bloopers
Clark Howard is doing a phased retirement. He is down to three shows a week on his channel. Wes Moss fills in on Tuesdays. His book, "What the Happiest Retirees Know" is really good. I am going through it now. Get your library to buy it and do a book review. I like the book reviews that you do.
I KNEW from the from the 1st Video that I discovered from your Channel that you are not AI! 😃 I appreciate you and the Videos that you post. Thank you! Please keep making them. I enjoy and learn so much!
Love all of your content! I'm really happy to have found your channel. Telling my friends to watch. Keep up the great work .. and real enjoy the out takes at the end! Wonderful 😊
I believe if you inherited an Ira prior to 2019, then you are grandfathered into the ability to stretch out those RMD’s beyond the current 10 year rule.
Thank you for talking about RMDs on inherited IRAs. My 96 yr old father-in-law left my wife an inherited IRA last year. Since he had been taking RMDs, she will have to take them even though she is only 68. And, we should take more than the required RMD for her age, otherwise it will not be depleted in 10 years.
Because the IRA I inherited from my mother was about $45,000, I’m taking the minimum RMD each year (I was 65 when I took my first RMD) so the IRA can continue to maximize growth, then I’ll take a lump sum the 10th year.
If I become the age to take RMD‘s and have multiple 401(k)s and our IRAs, do I have to take out of all accounts or just the total of the account? First year of RMD‘s I do a conversion to a Roth. Do I have to take my RMD‘s on the total Amount January 1? Or December 31 with a lesser amount? Great video.
Technically you just have to take out the required amount, but if you have accounts with multiple brokerage houses you need to let them know what you are doing or their system may automatically send you an RMD that you didn’t need/want. I think the answer to your second part is “based on 31 Dec”, but grammatically there are two different ways to interpret your question so the real answer is “ask your financial adviser”. ;)
As already mentioned, any conversions you want to do are totally separate from any RMDs that are required. I've read many times that your RMD for the year needs to be completed before you can do a Roth conversion from the same account (type). I'm not sure exactly where that's in the IRS rules, but I do it anyways. As far as aggregating your RMDs to take them out of a single account, it depends. First do a google query for RMD aggregation to find the actual IRS rules and read what others have said. You are generally able to aggregate RMDs from multiple accounts of the same type (traditional IRA, 401k, 403b) into a withdrawal from one account of that type, but you are not aggregate RMDs between account types. For example, you are not allowed to take the RMD for an IRA account from a 401k account. The RMD for 2025 is based on the balance of the account on 2024-12-31 The RMD for 2026 is based on the balance of the account on 2025-12-31 etc...
RMD is based on your combined retirement traditional (tax deferred) retirement accounts balances on December 31st of the prior year. So, for 2025, your RMD for 2025 is based on your combined balance total from December 31, 2024. You can choose however you want to withdraw the RMD amount over the year (e.g. weekly, monthly, lump sum, etc). A conversion does not count as an RMD. The only way to avoid taxes on an RMD would be to do a QCD equal to your RMD amount from a tIRA. QCDs are not possible from 401k's. Your RMD can be spent or reinvested in a taxable account. It could be possible to use the proceeds to contribute to an IRA again, so long as you have qualifying earned income (soc sec and RMD does not count as qualifying earned income).
Great video!. I will have to take RMD in the next 3-years and I don't think I will need to touch RMD money at that time and planning to invest that RMD money. Question, which way are the best way to invest ...by take RMD money every month or every quarter or one time (beginning of the year or by end of the year)?. Thanks
Hi Erin, love your vlogs. Thanks for sharing your wisdom. I have a question. Can I do Roth conversion of my employer sponsored 401k into my existing Roth IRA account or do I have open a new Roth IRA conversion account?
I miss the old Roth ability to stretch the accounts over the lifetime as well as the heirs. I developed an approach for my employed children and one grandchild that avoids the 10 year withdrawal requirement on a portion of my own Roth if I were to die, I opened and fund their own individual Roth accounts. The grandchild earned over $7k last year and is 17-years old. I take my first RMD this year and after a series of Roth conversions, my RMD is only $6100. We retired at 55 and 56, and for us the most ideal time to convert was after we retired, and even larger amounts converted with the current lower tax brackets of the Jobs Act, which ends this coming December 31st unless the president extends the act. Thank you Erin!
It’s also worth mentioning that you can transfer out the assets from accounts like a 401K into another taxable brokerage account. It means that you aren’t required to immediately sale them. I help my mother with hers RMD’s and it’s nice to see them continue to grow.with only the taxed portion being lost. She pays the tax from other income.
You are still “selling” them. You are essentially just saying that you’ve decided to re-invest into the same or similar investments in a non-qualified account. It’s great that your mom isn’t in a situation where she needs her RMDs for living expenses.
Hi, I have multiple accounts that will become subject to RMDs, can I pay the gross amount from a single account or do I have to pay the amounts due from all the accounts separately
I have taxes taken out of my social sequrity and pension at 12% before they send me a check. My RMD will be washed out by my standard deduction for married filing jointly. I’m 71 and I think it’s too late to do any Roth conversions that would work in my favor. Do you agree?
Informative, but a question about the IRS penalties. You note that the penalties have changed, but do people also need to be worried about interest on the penalties or the amount that would have been owed based on the RMD? That is, generally speaking, in addition to penalties, the IRS generally imposes interest on the amount that would have been owed from the time it was owed. For example, you have a stellar Q2, but you anticipate a meh Q4. You think it'll balance out, so you don't bother to make an estimated payment for Q2. When everything is done, you end up with a decent Q4, and so you end up owing more than $1000 in taxes. For personal income taxes if you owe more than a $1,000, there is a penalty. But when the IRS does a review and they see that you would have owed money on June 15, you also owe interest on the money that should have been paid. And the interest is calculated from June 15 through the filing date. So do people need to also factor in interest on the tax owed in addition to the penalties?
It is just Feb, 2025. I say spend some time to fully understand it before doing anything. I will be working on Roth conversion. What is the right amount? Will likely do one tax bracket up.
I know your RMD can not be rolled over into a Roth IRA but my question is, if I want to rollover additional money from my IRA into a Roth is it true that you can not rollover any additional money into a Roth until you take 100% of you RMD amount?
Helpful video. I will turn 73 in 5 years but on December 1. Will money I take out of my IRA prior to December 1 qualify as part of my minimum distribution for that year (2029) or will I have to take a distribution after December 1 for 2029 even though I may have taken the maximum RMD amount already? Thanks.
My mother (90) has two retirement accounts both maintained by TIAA. The TIAA rep says she has to take RMDs from both accounts but another investment professional (PIM?) my mom works with told her that, she can take the equivalent of her RMD from one account, and not the other, as long as her total RMD withdrawal is equivalent to her total required RMD based on the funds she has in both accounts. I think my mother and I decided the later was correct. But this seems an important issue to clarify as many people have multiple tax deferred retirement accounts.
You forgot to mention that there is a different withdrawal factor if the sole account beneficiary is a spouse who is more than ten years younger than the account owner.
FANTASTIC VIDEO! Question…. I have 3 accounts subject to RMDs. Two accounts give me 8.25% fixed. The remaining account is variable and is currently yielding 2%. Can I pay the total RMD on all 3 accounts using the money from the 2% account and not touch the 8.25 accounts? Thank you Erin.
During covid the rmd rules were suspended for BDAs. Did the 2025 rules bring a required distribution back or just deplete in 10 yrs if withdrawal was already in progress?
On 2015 my wife inherited a few different IRA's from her father. We chose to keep the money invested where it was because it was doing very well. A friend who is a financial advisor informed us last year that we needed to liquidate those funds based on the 2019 rule changes. My understanding is that we are grandfathered in under the old rules. Am I wrong? Will I be in trouble if we don't liquidate this year ( 2025).?
My father died in May 2019. He was 89 and I was 59. My 2 siblings and I got equal shares of 2 IRA's which we all rolled over individually. Fidelity has been calculating my RMD's and I've been taking them but 5 years have passed now. What is going to happen in 2025 ? Love your videos BTW. Thanks
I'm taking mandatory RMDs from an Inherited IRA. To get it depleted within the 10-year limit I'm taking out 10% each year. That method more than satisfies the RMD so I don't need to worry about IRS RMD tables and I won't have a big tax bill in Year 10.
What if I wanted to break up the first year into 2 years (not counting the following year’s rmd). So, if my RMD in 2025 is my first year and is $20k, can I take out 10k in 2025 and 10k in 2026 (before April 1st).
RMD must start at 73 for those born from 1951 through 1959. RMD must start at 75 for those born in 1960 or later. And you should take it as a compliment that people think you are AI generated.
Is it true if you are required to take an RMD that you cannot rollover addition funds into a Roth account until you have withdrawn your complete RMD reqirement?
yes, you cannot rollover the money. You have to take a withdrawal so the tax man gets his cut. You can then reinvest the proceeds in taxable account if you don't need the money. If you have qualifying earned income you could potentially reinvest in an IRA again.
@ I know you can not rollover the RMD into a Roth. My question is do you have to take the whole RMD before you can rollover more funds into a Roth IRA?
@Erin Talks Money, don't know what happened to my post, but I wanted to clarify that QCDs are only possible from IRA not all retirement accounts like 401k.
Because you need to at least take that minimum amount to avoid penalties. You can always take more than that, and probably will need to for all the funds to be removed within the 10 year period.
Great RMD info but like to add one thing. If Susan was 55, she wouldn't want to transfer the 401k into her name yet as that would cause an early withdrawn penalty if she ever needed money. Good idea to wait until she turns 59 1/2 then transfer to stop future RMD's.
If you have two different 401K accounts because you worked for two different companies and you reach RMD age, do you need to withdraw the RMD percentage from each account or could you take it all from one account and not touch the other?
The RMD is based on the total end of year balance on all accounts, but you don't need to pull from every account or evenly. I inherited accounts when my dad died, and my first RMD I took most of it from a smaller account to liquidate it.
@@berts4877 inherited accounted are separate from your accounts when it comes to RMDs. If you have RMD on your non-inherited accounts and you have inherited accounts, those are separate RMD calculations. Also, if you inherited from different people, that is also a separate RMD calculation. For example, your combined retirement account RMD is one calculation. Inherited traditional retirement accounts combined from one person (e.g. your dad), is a separate RMD calculation. Inherited traditional retirement accounts combined from another person (e.g. your mother), is another separate RMD calculation. This means, you cannot just combine all of your traditional accounts, plus your inherited accounts from your dad, and your inherited accounts from your mom and pay one RMD based on all those combined.
@@hanwagu9967 Thanks for the clarification. My experience was when I inherited 3 different IRA accounts from my Dad who was already taking RMDs when he died. I haven't inherited any other IRAs and I don't need to take RMDs on my own 401Ks for several years.
Start converting to ROTH early and often and keep an eye on the IRMAA brackets or you could be paying an additional $74+ per month for medicare! A.I., I can almost see that 😎
I swear, keeping up with RMD rule changes should be a full-time job. By the time I retire, will the age be 80? 90? Just let me keep my money in peace! 😩
The financial market has plenty of opportunities to earn which I myself took advantage of.. I made my first million from going diverse, mainly ETFs (stocks, bonds etc), coins, and gold. I'm also working on an investment plan with my FA, Abigail Ann Ryan. It's been a year and half of steady growth...
Being consistent is a very simple way to develop over time, and I can't emphasize this enough, seek help and supervision because not doing so in this market is like instructing a pre med to conduct surgery without the support of a certified surgeon lol.
Honestly, Erin is like having your very own financial advisor on TH-cam. She is really the best out there. Thank you! Please always include the Outtakes. lol. Love them.
Wow, thank you! 😊🙏
Yesss love her
Love how you broke down the new RMD rules in plain English. With so many changes lately, it’s easy for seniors to feel overwhelmed. Thanks for helping clarify this for the community!
Thank you!! 🙏
The grace first year / possible double dip RMD with its bump in income is very important information. This may have caught me both in a higher tax bracket but also in a higher IMRAA bracket for that second year. Much thanks.
Thanks, Erin. I get something new from every one of these videos. Still have 7 years before I need to start taking the RMD's but I will have a 100% understanding of what to do.
Thanks for the outtakes they always make me laugh. It also reminds us of how hard it is to put them together.
Hi Erin, another great video! I'm started performing my Roth conversion in December of 2024, and plan to complete them over an 8 year period. This will be prior to my retirement, because I would rather pay the taxes now while I'm working, rather than paying them when I'm retired and on a fixed income. I also believe the current tax brackets (the lowest in my history) will be extended.
You are running my exact plan, only a few years earlier than I will. Good luck!
How soon can you start pulling from your retirement account?
Hi Erin, this was another very good video and discussion. Funny and very animated out takes - say hello to Betty for me 😉 I have been dealing with RMDs for the last 5 years. My last RMD for this year is being processed today so now I can do my initial Roth Conversion for 2025. Thanks for all the ongoing content you provide on your channel. It is all very helpful to your followers. Have a blessed week and I'll see you on the next one. Larry, Central Valley, Ca.
Thanks Larry! I hope you have a great week too! 😊
Thanks for all your easy to understand videos. I constantly explain these to my wife and 4 adult children should something happen to me as they can understand our finances and theirs. You pack a lot of content in these!
Thank you so much! Your wife and kids are so fortunate to have you preparing them for the future. 😊
This is a great video! I'm 52 so I didn't think there was much for me to worry about yet, but the info on the inheritance is very important for me. I had no idea how that works.
Super informative video Erin! I could totally believe you are AI without the bloopers! 😂You never seem to get older and you deliver financial information so well!
😂😂😂
Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs) has the tables
I inherited a Traditional IRA from my father in 2016, and I chose the stretch option back then. That was before the ten year rule was implemented. I have seen the IRA grow along with the markets and it will be enough to cover most of our household expenses until we are in our 80's possibly.
Great job Erin, very good information that was delivered in plain English .
Love the content. Love the bloopers. Love that you show you're a real person.
For some reason hubby & I knew about RMD’s but didn’t realize until fairly recently that the amounts changed yearly based on actuarial tables. Whoa Nelly!!! What a shock!!
We’re in the early years of implementing a series of Roth Conversions as a result.
It also changes based off the year end balance.
You are a really good, clear speaker. I really like that you don't misspeak or backtrack on topics. I do have one suggestion and that is maybe you would consider not including things or calculations that no longer apply. Maybe just say "the current rules are ...". That would help keep things simple. But that's not a criticism but rather an idea because if everyone was as clear as you are it would be really great!
Best AI generated bloopers ever! So glad to see it getting the hands right, and the truly lovely shade of lipstick…
😃 - don’t worry, we will keep your secret that you aren’t AI, but instead are a westworld style robot programmed to seem adorably awkward in those bloopers
Keeping us current - thank you!
My wife and I are 9 days apart in age. RMD's are in our future in just a few years. Thanks for the information Erin! Great content.
Thanks for explaining this program, I was unsure, but this video helped a lot🙏🏿😊
Thanks!
Thank you 🙏🙏
Clark Howard is doing a phased retirement. He is down to three shows a week on his channel. Wes Moss fills in on Tuesdays. His book, "What the Happiest Retirees Know" is really good. I am going through it now. Get your library to buy it and do a book review. I like the book reviews that you do.
I KNEW from the from the 1st Video that I discovered from your Channel that you are not AI! 😃 I appreciate you and the Videos that you post. Thank you! Please keep making them. I enjoy and learn so much!
Many, many more videos to come. 😊 thanks for watching! 🙏
Love all of your content! I'm really happy to have found your channel. Telling my friends to watch. Keep up the great work .. and real enjoy the out takes at the end! Wonderful 😊
Love the information. Really love the out takes. 🙂
Thanks so much!
I believe if you inherited an Ira prior to 2019, then you are grandfathered into the ability to stretch out those RMD’s beyond the current 10 year rule.
You are so smart and cute....Thanks for sharing!
Another great topic ! Thanks Erin. You are rock :-))
Super information! We really enjoyed this video.❤
Your out takes made us laugh and smile alot they were so funny definitely you're not an AI person😂❤.
Thank you for talking about RMDs on inherited IRAs. My 96 yr old father-in-law left my wife an inherited IRA last year. Since he had been taking RMDs, she will have to take them even though she is only 68. And, we should take more than the required RMD for her age, otherwise it will not be depleted in 10 years.
Because the IRA I inherited from my mother was about $45,000, I’m taking the minimum RMD each year (I was 65 when I took my first RMD) so the IRA can continue to maximize growth, then I’ll take a lump sum the 10th year.
Great video.
Another great video, thanks Erin.
Thanks for watching!
I love your channel, thank you.
Thank you for watching! 😊
Excellent. Thanks.
If I become the age to take RMD‘s and have multiple 401(k)s and our IRAs, do I have to take out of all accounts or just the total of the account? First year of RMD‘s I do a conversion to a Roth. Do I have to take my RMD‘s on the total Amount January 1? Or December 31 with a lesser amount? Great video.
Technically you just have to take out the required amount, but if you have accounts with multiple brokerage houses you need to let them know what you are doing or their system may automatically send you an RMD that you didn’t need/want.
I think the answer to your second part is “based on 31 Dec”, but grammatically there are two different ways to interpret your question so the real answer is “ask your financial adviser”. ;)
I think conversions don't count towards RMDs.
@@nickt.2825
Conversions definitely do not count as RMDs, but I wasn’t sure if that was their question.
As already mentioned, any conversions you want to do are totally separate from any RMDs that are required. I've read many times that your RMD for the year needs to be completed before you can do a Roth conversion from the same account (type). I'm not sure exactly where that's in the IRS rules, but I do it anyways.
As far as aggregating your RMDs to take them out of a single account, it depends. First do a google query for RMD aggregation to find the actual IRS rules and read what others have said. You are generally able to aggregate RMDs from multiple accounts of the same type (traditional IRA, 401k, 403b) into a withdrawal from one account of that type, but you are not aggregate RMDs between account types. For example, you are not allowed to take the RMD for an IRA account from a 401k account.
The RMD for 2025 is based on the balance of the account on 2024-12-31
The RMD for 2026 is based on the balance of the account on 2025-12-31
etc...
RMD is based on your combined retirement traditional (tax deferred) retirement accounts balances on December 31st of the prior year. So, for 2025, your RMD for 2025 is based on your combined balance total from December 31, 2024. You can choose however you want to withdraw the RMD amount over the year (e.g. weekly, monthly, lump sum, etc). A conversion does not count as an RMD. The only way to avoid taxes on an RMD would be to do a QCD equal to your RMD amount from a tIRA. QCDs are not possible from 401k's. Your RMD can be spent or reinvested in a taxable account. It could be possible to use the proceeds to contribute to an IRA again, so long as you have qualifying earned income (soc sec and RMD does not count as qualifying earned income).
Hi Erin great video
Thank you 🤗
Thank you Erin! This is a great one for us oldies. And it was a compliment that they thought you are so perfect you must be AI generated. 😅
Great video!. I will have to take RMD in the next 3-years and I don't think I will need to touch RMD money at that time and planning to invest that RMD money. Question, which way are the best way to invest ...by take RMD money every month or every quarter or one time (beginning of the year or by end of the year)?. Thanks
Good video
Hi Erin, love your vlogs. Thanks for sharing your wisdom. I have a question. Can I do Roth conversion of my employer sponsored 401k into my existing Roth IRA account or do I have open a new Roth IRA conversion account?
You can use your existing Roth IRA when you do a rollover. There’s no need to open new ones. 😊
@ErinTalksMoney thank you ❤️
Very informative thanks Erin
You are so welcome!
I miss the old Roth ability to stretch the accounts over the lifetime as well as the heirs. I developed an approach for my employed children and one grandchild that avoids the 10 year withdrawal requirement on a portion of my own Roth if I were to die, I opened and fund their own individual Roth accounts. The grandchild earned over $7k last year and is 17-years old. I take my first RMD this year and after a series of Roth conversions, my RMD is only $6100. We retired at 55 and 56, and for us the most ideal time to convert was after we retired, and even larger amounts converted with the current lower tax brackets of the Jobs Act, which ends this coming December 31st unless the president extends the act. Thank you Erin!
Hi Erin, can you do a video that covers when an estate inherits IRA first and RMD consequences for beneficiaries listed in Will? Thanks.
Will do!
You are AI! Always informative!
Yes!!! 😊
It’s also worth mentioning that you can transfer out the assets from accounts like a 401K into another taxable brokerage account. It means that you aren’t required to immediately sale them. I help my mother with hers RMD’s and it’s nice to see them continue to grow.with only the taxed portion being lost. She pays the tax from other income.
You are still “selling” them. You are essentially just saying that you’ve decided to re-invest into the same or similar investments in a non-qualified account.
It’s great that your mom isn’t in a situation where she needs her RMDs for living expenses.
Hi, I have multiple accounts that will become subject to RMDs, can I pay the gross amount from a single account or do I have to pay the amounts due from all the accounts separately
I have taxes taken out of my social sequrity and pension at 12% before they send me a check. My RMD will be washed out by my standard deduction for married filing jointly. I’m 71 and I think it’s too late to do any Roth conversions that would work in my favor. Do you agree?
Informative, but a question about the IRS penalties.
You note that the penalties have changed, but do people also need to be worried about interest on the penalties or the amount that would have been owed based on the RMD? That is, generally speaking, in addition to penalties, the IRS generally imposes interest on the amount that would have been owed from the time it was owed. For example, you have a stellar Q2, but you anticipate a meh Q4. You think it'll balance out, so you don't bother to make an estimated payment for Q2. When everything is done, you end up with a decent Q4, and so you end up owing more than $1000 in taxes. For personal income taxes if you owe more than a $1,000, there is a penalty. But when the IRS does a review and they see that you would have owed money on June 15, you also owe interest on the money that should have been paid. And the interest is calculated from June 15 through the filing date.
So do people need to also factor in interest on the tax owed in addition to the penalties?
Great information, Erin! Thankfully, I’m 12 years away!
It is just Feb, 2025. I say spend some time to fully understand it before doing anything. I will be working on Roth conversion. What is the right amount? Will likely do one tax bracket up.
What is the IRS publication that shows how to calculate the inherited IRA RMD when the deceased had started taking RMDs? Thanks.
I know your RMD can not be rolled over into a Roth IRA but my question is, if I want to rollover additional money from my IRA into a Roth is it true that you can not rollover any additional money into a Roth until you take 100% of you RMD amount?
Helpful video. I will turn 73 in 5 years but on December 1. Will money I take out of my IRA prior to December 1 qualify as part of my minimum distribution for that year (2029) or will I have to take a distribution after December 1 for 2029 even though I may have taken the maximum RMD amount already? Thanks.
My mother (90) has two retirement accounts both maintained by TIAA. The TIAA rep says she has to take RMDs from both accounts but another investment professional (PIM?) my mom works with told her that, she can take the equivalent of her RMD from one account, and not the other, as long as her total RMD withdrawal is equivalent to her total required RMD based on the funds she has in both accounts. I think my mother and I decided the later was correct. But this seems an important issue to clarify as many people have multiple tax deferred retirement accounts.
You forgot to mention that there is a different withdrawal factor if the sole account beneficiary is a spouse who is more than ten years younger than the account owner.
Erin, Thank You for including your "Uh Ohs"......they are so refreshing and cute.
I am SO excited I have a new job with 401k match. At 5%. I will invest this including my Roth account 😊
Yep, I get 6% and it all goes into the ROTH 401k. Including the match. Love it!
Congrats!
FANTASTIC VIDEO!
Question…. I have 3 accounts subject to RMDs. Two accounts give me 8.25% fixed. The remaining account is variable and is currently yielding 2%. Can I pay the total RMD on all 3 accounts using the money from the 2% account and not touch the 8.25 accounts?
Thank you Erin.
your RMD for the year is based on your combined balance as of 31 December. You can choose which account to withdraw the RMD amount from.
I took a QCD to avoid paying taxes on a RMD from a trandisital IRA.
I'm planning to use qualified charitable distributions when I can as well.
During covid the rmd rules were suspended for BDAs. Did the 2025 rules bring a required distribution back or just deplete in 10 yrs if withdrawal was already in progress?
On 2015 my wife inherited a few different IRA's from her father. We chose to keep the money invested where it was because it was doing very well. A friend who is a financial advisor informed us last year that we needed to liquidate those funds based on the 2019 rule changes. My understanding is that we are grandfathered in under the old rules. Am I wrong? Will I be in trouble if we don't liquidate this year ( 2025).?
You should be grandfathered in based on the date you said she inherited those. I would seek advice from a new tax advisor.
@ErinTalksMoney thanks, I thought so
Male me feel better about my decision.y wife can now relax. I did not screw up her money.
My father died in May 2019. He was 89 and I was 59. My 2 siblings and I got equal shares of 2 IRA's which we all rolled over individually. Fidelity has been calculating my RMD's and I've been taking them but 5 years have passed now. What is going to happen in 2025 ? Love your videos BTW. Thanks
As I understood the law if I am still actively working I can delay my RMD. Is this correct. I will be 73 this year
I'm taking mandatory RMDs from an Inherited IRA. To get it depleted within the 10-year limit I'm taking out 10% each year. That method more than satisfies the RMD so I don't need to worry about IRS RMD tables and I won't have a big tax bill in Year 10.
What if I wanted to break up the first year into 2 years (not counting the following year’s rmd). So, if my RMD in 2025 is my first year and is $20k, can I take out 10k in 2025 and 10k in 2026 (before April 1st).
Does the 10 yr rule apply to an inherited IRA you obtained prior to 2019?
No, your grandfathered in to old rules
I had my bank automatically withdraw the minimum mid December and deposit to my account.
Question, I have an Ira, my wife has her own. I need to start RMD’s next year. Will this be only on my account?
Yes
RMD must start at 73 for those born from 1951 through 1959. RMD must start at 75 for those born in 1960 or later.
And you should take it as a compliment that people think you are AI generated.
Is the use of "withdraw" as a noun instead of a verb a millennial thing?
Is it true if you are required to take an RMD that you cannot rollover addition funds into a Roth account until you have withdrawn your complete RMD reqirement?
yes, you cannot rollover the money. You have to take a withdrawal so the tax man gets his cut. You can then reinvest the proceeds in taxable account if you don't need the money. If you have qualifying earned income you could potentially reinvest in an IRA again.
@ I know you can not rollover the RMD into a Roth. My question is do you have to take the whole RMD before you can rollover more funds into a Roth IRA?
@Erin Talks Money, don't know what happened to my post, but I wanted to clarify that QCDs are only possible from IRA not all retirement accounts like 401k.
Why reference the life expectancy tables if the inherited account must be fully withdrawn within ten years?
Tens years is for inherited ira
Because you need to at least take that minimum amount to avoid penalties. You can always take more than that, and probably will need to for all the funds to be removed within the 10 year period.
I gotta watch this but don't have time right now.
For people just starting out their working career, use the Roth 401 or IRAs only!
So am I correct in saying that if you were born in 1960 you would not have to take RMD’s until you were 75.
Great RMD info but like to add one thing. If Susan was 55, she wouldn't want to transfer the 401k into her name yet as that would cause an early withdrawn penalty if she ever needed money. Good idea to wait until she turns 59 1/2 then transfer to stop future RMD's.
If you have two different 401K accounts because you worked for two different companies and you reach RMD age, do you need to withdraw the RMD percentage from each account or could you take it all from one account and not touch the other?
The RMD is based on the total end of year balance on all accounts, but you don't need to pull from every account or evenly. I inherited accounts when my dad died, and my first RMD I took most of it from a smaller account to liquidate it.
@@berts4877 Thank you for the info. That was my gut feeling, but I wanted to be sure.
@@berts4877 inherited accounted are separate from your accounts when it comes to RMDs. If you have RMD on your non-inherited accounts and you have inherited accounts, those are separate RMD calculations. Also, if you inherited from different people, that is also a separate RMD calculation. For example, your combined retirement account RMD is one calculation. Inherited traditional retirement accounts combined from one person (e.g. your dad), is a separate RMD calculation. Inherited traditional retirement accounts combined from another person (e.g. your mother), is another separate RMD calculation. This means, you cannot just combine all of your traditional accounts, plus your inherited accounts from your dad, and your inherited accounts from your mom and pay one RMD based on all those combined.
@@hanwagu9967 Thanks for the clarification. My experience was when I inherited 3 different IRA accounts from my Dad who was already taking RMDs when he died. I haven't inherited any other IRAs and I don't need to take RMDs on my own 401Ks for several years.
They may be in my future, but as of now I don't envision them being a problem since I'll need the money anyway.😅
is there a way to obtain this RMD information from the government?
with google all things are possible 😉😂
yes, the government has a wide variety of resources on the IRS website!
IRS.gov, plus lots of TH-cam investor sites
The RMD amount should show where your account is held.
The info about RMDs is on the IRS website.
The info for you and your particular RMDs you get from your brokerage.
2037 here. Still contributing to the Roth. All is good.
Start converting to ROTH early and often and keep an eye on the IRMAA brackets or you could be paying an additional $74+ per month for medicare!
A.I., I can almost see that 😎
I swear, keeping up with RMD rule changes should be a full-time job. By the time I retire, will the age be 80? 90? Just let me keep my money in peace! 😩
Am I not paying attention; What is the new rule that didn't already take effect in 2023?
I need AI Erin in my life. Who does want Algorithmic rambling 24/7? ❤❤❤😂😂😂
😂
Good work! Pinch yourself if you ever need to check to see if you’re real. 🤙
ouch! definitely real!
Excuse my language, but F the govt for complicating things. Thankfully we have angels like Erin to help us mortals 😉
I would think someone thinking you are AI means you are (nearly) perfect. I would take that as a complement.
Looks like AI? whahhh? no way! too much personality. :D
Thank you 😂😂 what I’m trying to say!
But would an AI generated video claim it’s not AI generated? 🤔 😂
😂😂
The financial market has plenty of opportunities to earn which I myself took advantage of.. I made my first million from going diverse, mainly ETFs (stocks, bonds etc), coins, and gold. I'm also working on an investment plan with my FA, Abigail Ann Ryan. It's been a year and half of steady growth...
Did a quick web search, she has a pretty decent bio, I wrote her and I'm waiting on her reply.
Being consistent is a very simple way to develop over time, and I can't emphasize this enough, seek help and supervision because not doing so in this market is like instructing a pre med to conduct surgery without the support of a certified surgeon lol.
Impressive. also I did read about Abigail Ann Ryan on the web, great resume she has.
Thanks for sharing this. Verified her on the SEC site and she is solid, wrote her and scheduled a meeting
^^^^
Bots
IRS.Gov is the main