On Bob Brinker today..

[GFB]

..and yes, this is meant to be helpful.

Not everyone wants to listen to a 3 hour radio show about finances.

And I don't try to give even a "reader's digest" version.

I pick one or two items that I think stand out, and would be the most interesting or helpful..and just touch on them.

Today, two items of particular interest came up. One was, discussion of the Required Minimum Distribution that people face at age 70 1/2 from many retirement accounts.

The other was the "wash sale rule" that allows people to "write off" losses in the stock market, that people can utilize at the end of a tax year.

[ralph]

so , what was said about minimum distribution GFB . The way I understand it there is a starting per cent at 70 and a half and the percentage increases yearly .

[GFB]

so , what was said about minimum distribution GFB . The way I understand it there is a starting per cent at 70 and a half and the percentage increases yearly .

Your beloved government figures all that out for us (whether we like it or not)

There is a calculation they use that divides the totality of your retirement money into about 27 years..and they start sending it to you..that's how long you are allowed live I guess.

[ralph]

I think that the percent starts out at 3.65 at 70 and a half and increases yearly from there [small increments] . 27 years , heck , that'll make me 102 [yikes] , I've known a couple pampered ladies that lived to 100 - 102 , I don't want to do that !! Heck , I'll be lucky to make it to 75 or 80 .

[GFB]

I think that the percent starts out at 3.65 at 70 and a half and increases yearly from there [small increments] . 27 years , heck , that'll make me 102 [yikes] , I've known a couple pampered ladies that lived to 100 - 102 , I don't want to do that !! Heck , I'll be lucky to make it to 75 or 80 .

Start spending early!

[GFB]

I think the Roth IRA is the only one that doesn't have an RMD.

You can actually leave all of a Roth to heirs,.basically, the Feds don't get a cut when you liquidate shares in your Roth..so they have no interest in that..they've already gotten their cut.

[ralph]

yep , the little I understand the Roth is the way to go . Better than the traditional as Roth goes in the pocket at anytime [I think'] but Traditional is doled out and taxes need to be paid . ------- Something like that !! And yep , Roth can go to heirs I think . I'm certainly no expert . Course I'm 65 so a few more years to go till it's even a concern [I think] .

[planosteve]

There is a chart they use. It is figured seperately for each 401k or IRA. The only thing you need to know is to contact them before the end of the year in which you turn 70 1/2.
Let them figure your MRD. If you want more just tell them. And tell them when to issue your check. I like to take mine in early Nov. so I have plenty of time before the end of the year in case they screw up. Otherwise, there is a big penalty.