401K RMD
Hi Terry,
I need an opinion on 401K MRD.
I have been taking a MRD since I turned 72. I am now 81. This year I am not required to
take one and will suffer no penalty. I am a widower and have no one dependent on me.
I don’t rely on this distribution for living expenses.
The 401K is handled by Fidelity and rebalanced once or twice a year by Edelman Financial Engine. I requested they
handle it in a fairly conservative manor. The only issue I see is for me to not qualify for the Kane County
Senior Citizen Assessment Freeze if I wait to take the RMD till next year. It has a maximum income limit.
Any thoughts or suggestions?
Terry Says
Sadly, the RMD is based on your age and the value of your account. Fidelity will determine the amount required to be withdrawn and send it to you — in one lump sum, or throughout the year. It will all be ordinary income. And there’s nothing you can do about that. I hope you can still qualify for 2021. Wait to see what happens. But I hope that is your largest financial problem — too much income!
