Automated RMD service

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bertilak
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Automated RMD service

Post by bertilak »

Vanguard will automate taking one's RMD, if you sign up for the service. I am (or was?) signed up for this but cannot find any info on WHEN the 2022 RMD will be taken or if I am, indeed, properly signed up.

Can someone point me to where on the web pages I can see this info? Believe me, I hunted but get lost in a maze of irrelevant info! A phone call left me on hold.

I need to know because I plan to use the RMD to pay property taxes which are due in January. I can take the distribution manually but don't want to get tangled up with their automated process.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
Tom_T
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Re: Automated RMD service

Post by Tom_T »

Try:

My Accounts
Retirement Contributions, distributions & RMDs
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bertilak
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Re: Automated RMD service

Post by bertilak »

Tom_T wrote: Mon Oct 18, 2021 2:09 pm Try:

My Accounts
Retirement Contributions, distributions & RMDs
Been there. Tells me about 2021 distributions already taken but not about 2022 nor how I can see or changes options, like % tax withheld and date to do it. Both of those are important for me to know!
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
Alan S.
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Re: Automated RMD service

Post by Alan S. »

In many cases it is much easier to know how to calculate and distribute your RMD, than to know exactly how and when an automated service works. You still have to check late in the year or right after a distribution to determine if the automated service functioned correctly.

Either way, it is easy to get the IRS to waive the penalty, but it's not possible to fix the year to year income distortion due to being late, under distributing your RMD, over distributing your RMD, improperly incorporating any QCD.

Boils down to this:
If you are reasonably organized and can calculate and distribute your RMD, you are better off without the service. If not, then the service will reduce the chances of an error.

Avoid RMD services for accounts that you plan QCDs for, or accounts that are part of an RMD aggregation strategy where the RMD distribution will not be equal to the RMD for that account only.
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ruralavalon
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Re: Automated RMD service

Post by ruralavalon »

bertilak wrote: Mon Oct 18, 2021 2:26 pm
Tom_T wrote: Mon Oct 18, 2021 2:09 pm Try:

My Accounts
Retirement Contributions, distributions & RMDs
Been there. Tells me about 2021 distributions already taken but not about 2022 nor how I can see or changes options, like % tax withheld and date to do it. Both of those are important for me to know!
On that page there is a section "Your RMD automatic distribution".

That section shows the next distribution date, but not further. That section shows %% tax withholding.

In that section there are "edit" and "delete" buttons, to make changes.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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bertilak
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Re: Automated RMD service

Post by bertilak »

ruralavalon wrote: Mon Oct 18, 2021 7:24 pm
bertilak wrote: Mon Oct 18, 2021 2:26 pm
Tom_T wrote: Mon Oct 18, 2021 2:09 pm Try:

My Accounts
Retirement Contributions, distributions & RMDs
Been there. Tells me about 2021 distributions already taken but not about 2022 nor how I can see or changes options, like % tax withheld and date to do it. Both of those are important for me to know!
On that page there is a section "Your RMD automatic distribution".

That section shows the next distribution date, but not further. That section shows %% tax withholding.

In that section there are "edit" and "delete" buttons, to make changes.
On the "Your RMD automatic distribution" page I see:
  • Your RMD automatic distribution Delete
    Distribution type Distribution to your bank account
    Bank xxxxxxxxxxxxxx
    Distribution frequency Once a year
    Distribution method In percentages from your Vanguard funds
    Federal tax withholding amount 20%
That "delete" is clickable but nothing else is clickable and there is no "edit" button.
There is nothing about next distribution. It shows a withholding percentage but there is no way to edit it.
Nothing about next date.

Might this be because it says "Congratulations! You've satisfied your RMD for your Vanguard accounts this year."
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
GJ48
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Re: Automated RMD service

Post by GJ48 »

I just now verified this path shows me my settings for 2022

(1) My Accounts
(2) Retirement Contributions, distributions & RMDs
(3) View your RMD status
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ruralavalon
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Re: Automated RMD service

Post by ruralavalon »

In the section "Your RMD automatic distribution" I have "edit" "delete "

Distribution type . . . . . . . .Distribution to your bank account
Bank . . . . . . . . . . . . . . . . xxxxxx
Distribution frequency . . . . Once a month "view schedule"
Distribution method . . . . . . Proportionally across your Vanguard funds
Next distribution . . . . . . . . xx/xx/xx, "what does this date mean?"
Federal tax withholding . . . xx%
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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bertilak
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Re: Automated RMD service

Post by bertilak »

ruralavalon wrote: Tue Oct 19, 2021 5:23 am In the section "Your RMD automatic distribution" I have "edit" "delete "

Distribution type . . . . . . . .Distribution to your bank account
Bank . . . . . . . . . . . . . . . . xxxxxx
Distribution frequency . . . . Once a month "view schedule"
Distribution method . . . . . . Proportionally across your Vanguard funds
Next distribution . . . . . . . . xx/xx/xx, "what does this date mean?"
Federal tax withholding . . . xx%
I sent a question (How do I see/edit my 2022 automated RMD service?) via the secure messages facility. Awaiting response.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
Tom_T
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Re: Automated RMD service

Post by Tom_T »

Is it possible that they're not going to show you your 2022 amount because they haven't calculated it yet? Isn't it based on the 2021 year-end value of the account?
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bertilak
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Re: Automated RMD service

Post by bertilak »

Tom_T wrote: Tue Oct 19, 2021 6:47 am Is it possible that they're not going to show you your 2022 amount because they haven't calculated it yet? Isn't it based on the 2021 year-end value of the account?
Yes, they haven't calculated the amount yet but I need to tell them at least two things:
1. the schedule of distributions and
2. the percent withholding.
I cannot find either the current settings of those options nor any way to set them.

The only thing I can find is a history of 2020 and 2021 RMDs and the "delete" option which I haven't clicked on so as not to further muddy the waters.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
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ruralavalon
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Re: Automated RMD service

Post by ruralavalon »

bertilak wrote: Tue Oct 19, 2021 6:53 am
Tom_T wrote: Tue Oct 19, 2021 6:47 am Is it possible that they're not going to show you your 2022 amount because they haven't calculated it yet? Isn't it based on the 2021 year-end value of the account?
Yes, they haven't calculated the amount yet but I need to tell them at least two things:
1. the schedule of distributions and
2. the percent withholding.
I cannot find either the current settings of those options nor any way to set them.

The only thing I can find is a history of 2020 and 2021 RMDs and the "delete" option which I haven't clicked on so as not to further muddy the waters.
Perhaps the format may they give me is different because we use monthly distributions, not annual.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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Doom&Gloom
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Re: Automated RMD service

Post by Doom&Gloom »

I seem to recall having the same issue last year as I was attempting to verify that I did not need to make changes after "upgrading" to the brokerage platform.

I just checked again for this year and the only option I see is "Delete." I have already taken my RMD for 2021. However, if I go to "Automatic Transactions" I do see the date of my RMD for 2022 and the mutual fund to be debited but no other details.

I am guessing that the additional information will not be visible on VG's site until 2022.
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bertilak
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Re: Automated RMD service

Post by bertilak »

Doom&Gloom wrote: Tue Oct 19, 2021 10:26 am I seem to recall having the same issue last year as I was attempting to verify that I did not need to make changes after "upgrading" to the brokerage platform.

I just checked again for this year and the only option I see is "Delete." I have already taken my RMD for 2021. However, if I go to "Automatic Transactions" I do see the date of my RMD for 2022 and the mutual fund to be debited but no other details.

I am guessing that the additional information will not be visible on VG's site until 2022.
That's the secret! I found my next scheduled RMD trade date (1/5/2022) and next scheduled withdrawal date (1/6/2022).

They sure lead you down the garden path by not putting that link on their RMD page. I still do not see a way to make a change if I am unhappy with the way things are. I suppose I can simply use that delete link and then (somehow) set up an new automatic RMD.

So in my case I can just wait for that to happen and I will have enough cash to pay my property tax before the deadline of 1/31/2022. This is what I wanted to find out in the first place. Once that all settles I can pay my taxes and reinvest the rest as needed to maintain my AA.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
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