Retirement RMDs

[jk_104]

I retired at the end of 12/31/22 and my income for 2023 will be significantly less than what I had been making. I know there is a special form to file with social security. When should this be submitted.

When I moved my 401K earnings to an IRA they required that I take a RMD at that time 4/2023. Do I have to take another RMD this year now that the IRA is in place?

I have a private stock that is not listed on the stock exchange and I have to do an "in kind" RMD? Can I lump that amount of money into other taxable 401K monies and make only one RMD request and not disturb the private stock monies?

[DawnCo]

Hi ,

Thanks for reaching out. These are great questions a lot changes when going into retirement. I applaud you staying on top of it. 

First question,  I retired at the end of 12/31/22 and my income for 2023 will be significantly less than what I had been making. I know there is a special form to file with social security? When should this be submitted?

Yes a from SSA-44 should be submitted. I would advise to do it as soon as possible. This addresses additional withholding adjustments for Medicare Income Related Adjustments. Here is link for that:

 https://www.ssa.gov/forms/ssa-44.pdf

You may also consider withholding from Social security as well. 

https://www.ssa.gov/manage-benefits/request-withhold-taxes 

When I moved my 401K earnings to an IRA they required that I take a RMD at that time 4/2023. Do I have to take another RMD this year now that the IRA is in place? If the RMD was for 2023, then no you would not need to take an additional RMD from that account for 2023. As long as you were not making up for a missed RMD, then you are fine on that account. You will still need to address RMD from other accounts for 2023.

I have a private stock that is not listed on the stock exchange and I have to do an "in kind" RMD? Can I lump that amount of money into other taxable 401K monies and make only one RMD request and not disturb the private stock monies?

Yes according to IRS guidance below, If you have more than one IRA, you must calculate the RMD for each IRA separately each year. However, you may aggregate your RMD amounts for all your IRAs and withdraw the total from one IRA or a portion from each of your IRAs. You do not have to take a separate RMD from each IRA.

https://www.irs.gov/retirement-plans/rmd-comparison-chart-iras-vs-defined-contribution-plans#:~:text....

I hope this helps to clarify things to address for 2023 in retirement.

DawnCo, EA

[ericbastian]

Hi jk_104,

To apply for Social Security, please use the link below!

https://secure.ssa.gov/iClaim/rib

Required Minimum Distributions (RMDs) are calculated each year based on your account balance and age. If you were required to take one last year, you will need to take one every year going forward.  Your brokerage firm can tell you how much you need to withdraw, and should be able to assist you with setting up automatic distributions, which can be monthly, quarterly or yearly.

You will need to check with your brokerage firm to see if they can "HOLD" your private stock.

I hope these answer were helpful!

Have a blessed day!

Eric

[dmertz]

The RMD for an IRA is based on the previous-year's year-end balance, so if the IRA to which the 401(k) was rolled in 2023 had a zero balance at the end of 2022, there is no 2023 RMD for the IRA.