Monthly or Quarterly RMD from 403b plan?

Home Fairmark Forum Retirement Savings and Benefits Monthly or Quarterly RMD from 403b plan?

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  • #14390
    Jannie
    Participant

    Several employers within this, both guaranteed and stocks – does it make any difference (advantage to me) if the payment for the RMD is done monthly vs quarterly. The last couple yrs. have been calling and having them send lump sum – a pain to remember.
    And, if I have them transfer to their taxable offering (not-retirement) would timing make a difference – thinking about just having it go into something rather than my savings/checking which gets 0 interest. 🙂

    #14398
    Alan S.
    Participant

    The only requirement is that the 1099R reports the total RMD. It can be distributed over many distributions or a lump sum, in cash, or in kind (eg shares transferred to taxable brokerage account).

    I would just stay away from distributions in the last 10 days of the year. If you opt for automatic payments, best to use a date between the 6th and 20th of the month to avoid year end or beginning of year foul ups, which are very common.

    #14399
    Jannie
    Participant

    Thanks for the advice – I understand about the potential foul up, my first RMD was a mess due to miscommunication with the firm – luckily it was the first RMD so wasn’t in trouble with IRS, however ended up having to pay more taxes than needed since there were 2 in that yr.
    Been looking at automatic as a way to eliminate remembering to call each yr.
    Had overlooked the fact there could be mess ups even if automatic.

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