Retirement financial planners and RMD from 403b & Ira
Do I need a firm that deals with my Ira and 403b regarding RMD withdrawals? I have a CFP with my bank for the IRA. But she told me to ask my tax person about how much of percentage to withhold. I thought she would know this. Also I have Empower for my 403B from work. I am wondering the same thing about RMD regarding percentages. I am retired and have to do this for next year because of my age. My person at the bank suggested I put both accounts into one. Then withdraw from one account. I am having such anxiety about this. I don’t know what to do. Please help me. Sorry I had so much to say. Thanks for any help you can give to me.
Terry Says
OK, the first issue is whether you should rollover your 403(b) from work. Generally, I suggest you do that (but definitely not toa bank!). That’s because you might want some more conservative investment choices after you retire, and especially when you reach age 73 and have to start considering RMDs. (Note, if you are still working for that company, you don’t have to take RMDs until you retire.)
Please read this article for instructions on doing a rollover: https://www.terrysavage.com/rollover-now/
The second part of your question is about CALCULATING RMDs. You do that based on the balance in ALL your IRA accounts at the end of the previous year. You can do that on your own. Details here:
https://www.terrysavage.com/ready-for-rmds/
The third part of the question — WITHHOLDING taxes — really depends on your total income, and how much you are likely to owe in taxes (including on your RMDs) along with other income and that includes Social Security. That’s why you’ll consult your tax preparer for advice on how much to withhold from your RMD. Generally, you could start with a 20% withholding, and when you prepare your taxes next year, you can adjust. But that should keep you safe.
