# Method used to tap IRA/401k's???



## Micheal (Jan 28, 2009)

OK I'm getting to the point (next year) I've got to start withdrawing from an IRA. :sob: As I look into this required withdrawing there seems to be few options as to withdrawing and not realy that much difference in which option you use. 
There is the "4% rule", the IRS's "RMD" (required minimum distributions), dividend/cap gains only, and a few others..... so I've found.

Sooo, to those who have tapped their retirement funds (IRA, 401k, or 403b) what method did you use? :shrug: Do you even know or did you just leave it up to the account custodian to pick one for you? :ashamed:

Since I've no real need for the money I'm more inclined to go with the IRS's "RMD", but hey I'm open to suggestions, thoughts - got any?????

And NO I will not be sending/giving the money to you... :nono: ound::hysterical:ound:
To many family members already waiting in that line.......


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## pancho (Oct 23, 2006)

Why not just leave it where it is?
That is what I decided to do.
So far this year, as of last quarter, I have made over 15% on mine.


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## jassytoo (May 14, 2003)

If you are 70 plus 6 months you have to start with drawing or you get hammered with taxes ( 50% ) I think it is. If you don't need the money I'd take the RMD. You can always reinvest it yourself.


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## Micheal (Jan 28, 2009)

Hopefully if'n I live that long I'll be 70 in 2013; 70&1/2 in 2014. The rub comes in that if'n I wait till I'm to the 70&1/2 in 2014 then I have to take out in effect twice the yearly amount I would have - the 2014 amount and also the 70&1/2 amount. It's not as really confusing as it sounds (really)...... So I figure next year just to start withdrawing whatever amount deemed necessary to stay "legal".....
I was just wondering how others treated taking money out (withdrawing) of their IRAs, etc.......... 

As a side note - this is a "Traditional" type IRA not a "Roth" type. 

And the topper - I won't even get into the efforts spent in consolidating the IRAs - every fund co is happy to take your money during the accumulating years, but sure jerk you around if and when you want to tap it or move it elsewhere........... paprwork, more paperwork, and oh, did I mention the paperwork involved!


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## suitcase_sally (Mar 20, 2006)

I moved my IRA this fall and it only took about 30 minutes.

On an aside, there is something called "topping" that my DB told me about (he's a CPA). Say you're in the 15% tax bracket. Say your RMD for next year is $3,000. Even if you don't need the money, it may behoove you to look at how much more you can take out and still stay at that 15% tax bracket. "Top Up" to just under the next tax bracket. It may be smart to take as much as you can each year, or your heirs might get hit with a BIG tax bite when they get it..


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## Micheal (Jan 28, 2009)

suitcase_sally said:


> I moved my IRA this fall and it only took about 30 minutes.


The transfer(s) I made mention of was to a Vanguard IRA from TIAA-CREF. Got what turned out to be some "bum" info/paperwork from Vanguard twice. Had to recontact T-CREF (for more paperwork) because of Vanguard's screw-up.........


> On an aside, there is something called "topping" that my DB told me about (he's a CPA). Say you're in the 15% tax bracket. Say your RMD for next year is $3,000. Even if you don't need the money, it may behoove you to look at how much more you can take out and still stay at that 15% tax bracket. "Top Up" to just under the next tax bracket. It may be smart to take as much as you can each year, or your heirs might get hit with a BIG tax bite when they get it..


 Ahh, yep heard of it, even tried it the first, into the 2nd year of retirement. The problem lies in you having to keep track of projected (next years) income and being retired I've become somewhat lazy as to juggling money issues like I use to. I will say though if'n you do have a known limited stream of income the system works quite well.......

As to my "heirs" - oh well - whatever they end up with will be a whole lot more than they had......... personally don't think I'll be in any shape to care.....  ound::hysterical:ound:


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## Lazy J (Jan 2, 2008)

I moved monet from one IRA to another all it took was a phone call. The check was sent directly to the new custodian. Very simple.


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## Micheal (Jan 28, 2009)

YHA-WHOOO :bouncy: YIPEEE :banana: The gods be praised!!!!!!! :bow:
I finally got confirmation yesterday from Vanguard that my IRA transfer from TIAA-CREF has been completed.......... :rock:
To those that it only took a phone call and maybe 30 minutes to transfer your IRA from one place to another consider yourself lucky......as you can see mine took a lot l o n g e r than that. :awh:
But now the :duel:is over and I can now try and guesstimate :grit: when I want to start withdrawal (before it becomes mandatory) and what method I want to use.


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