cancel
Showing results for 
Search instead for 
Did you mean: 
     
Highlighted
Juris2
Explorer ○○○

RMD on Supplemental Tax Deferred Accts.

Today I "filed" for RMD's on my supplemental accounts (403b, 457b) at Fidelity. For the last several years, I've done this "manually," i.e., by completing forms and mailing them to Covington KY for processing the next day. The blank forms themselves can be downloaded. For each account, I designate the destinations as a) Federal tax, b) State tax, c) a "savings" account at Fidelity.

The first few times I did this I was annoyed about the amount of time it took to receive the transfer to the Fidelity savings account:  4 or so business days. However last year I got the savings deposit money within 2 days.

Someday maybe I will automate with monthly or quarterly transactions.

0 Kudos
4 Replies
yogibearbull
Contributor ○○○

Re: RMD on Supplemental Tax Deferred Accts.

I just do that on phone. Fido has voice recognition on. Initially, it took Fido 2 wks to set up the bank link. There is a list of things to go through on phone - how to take money out [from one fund or proportionally], how much tax to withhold, which account to send to. I am waiting when this can be done online.

YBB
0 Kudos
Juris2
Explorer ○○○

Re: RMD on Supplemental Tax Deferred Accts.

Yes that would be nice. But I think they're a little better now than a few years ago.

BTW/ here is a link to the Fidelity "Library" site with the blank forms:  https://nb.fidelity.com/public/nb/atwork/home/library

ADDED: I'm trying to be smarter about making payments to the MI State Treasurer and to Uncle Sam (IRS). In the last two years the State penalized me for owing them too much money at tax filing time (April 15). So I'm doing what I can now, with my once-per-year RMD process. Sending larger than "proportional" amount of my RMD payout to the State Treasurer now -- to cover some of the taxes that will be due from my brokerage account (mainly income). I'm not very good at this, and I don't use a tax accountant. I may do that in future.

My RMD income on my TIAA RA is exempt from MI state income tax, since this is a "government pension" (working at a state university counts as government work for this purpose). That preference is being phased out for younger cohorts. But my RMD income from my supplementary accounts (SRA, 457b) at Fido is subject to state income tax -- as are, of course, income and capgains earned from my taxable investments at Fido.

0 Kudos
Juris2
Explorer ○○○

Re: RMD on Supplemental Tax Deferred Accts.

Good news (for me). I just got a text msg from Fidelity reporting that a withdrawal or rollover was initiated from my account.

This means that the package (with forms for each of the three 403b and 457b sub-accounts) that I mailed to Covington, KY yesterday afternoon with guaranteed Noon delivery today was processed by early afternoon today. Now the question is how long it will take for the results of the transactions to appear online. If that's tonight, it would be great! In past years it has taken up to 5 days. I will look for reductions in the three tax-deferred accts, and a cash transfer to a Fidelity taxable money-market account. One-day turnaround? If so, a record.

Yogi, because I handled each of the three accounts differently I didn't try to do this by telephone. I specified exact dollar amounts from each RMD to be sent to the state treasurer and US IRS, and those amounts (as well as the percentages) were different for each account.

Also, this approach leaves me with a paper trail, i.e., what I instructed them to do is in writing.

ADDENDUM (Thursday night): It turned out that the msg that I received from Fidelity around 12:30 today (Thursday mid-day) only referred to 1 of the 3 RMD forms that I submitted yesterday. Around 6:30 PM I received two more messages, each informing me of the same thing as the first message: "a rollover or withdrawal was initiated from your account. Not you? Please call...".  So now I have 3 confirmations that a rollover or withdrawal was initiated. I suspect I won't see the results of any of these online tonight, but I'll check my account at 9 PM or so. More likely tomorrow night these will show up on my account online.

LATER (Friday morning): My Fido account shows that requested RMD's were taken from my 3 investment accounts. But the net cash (after taxes) hasn't shown up in my cash account as of 8:30 AM today. Presumably the payments to the IRS and the MI State Treasurer are also in process.

0 Kudos
Juris2
Explorer ○○○

Re: RMD on Supplemental Tax Deferred Accts.

Hooray! A new world record. On Wednesday afternoon I speed-mailed my RMD transfer request documents for three accounts to Fidelity (in Covington KY). Thursday just after noon I received an electronic notice one transfer had been made, and in late afternoon that the remaining two had been made. Friday morning (today) I saw that all three accounts have had the RMD taken out. And Friday noon (today) I now see online that the net RMD has been deposited in my MMF at Fidelity. (Presumably cash has also been sent to the IRS as well as my state Treasurer, as I requested.)

That's FAST. Compared to previous years when it took as many as 5 days for the net RMD to show up in my MMF online, this year it took only 1 day from the time Fidelity received my paper request. I'm happy.

0 Kudos
Announcements

To learn more about the recent changes to Morningstar.com, please see the updated FAQ.

See recent posts and all our forums or access the old forums here.
 

You can read the community guidelines in