My question is how does the IRS know if I'm taking the proper RMD?

I have a financial advisor (a fiduciary) that has given me my RMD amount
for 2025. This will be the first year I make an RMD withdrawal.

How does the IRS know if the amount given to me by my advisor is the
correct amount?

Also, do I have to take the entire RMD amount all at once, or can I take multiple withdrawals?

Thanks.

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On 5/12/2025 11:18 AM, Boris wrote:

My question is how does the IRS know if I'm taking the proper RMD?

I have a financial advisor (a fiduciary) that has given me my RMD amount
for 2025. This will be the first year I make an RMD withdrawal.

How does the IRS know if the amount given to me by my advisor is the
correct amount?

Also, do I have to take the entire RMD amount all at once, or can I take multiple withdrawals?

Thanks.

The required RMD is based on the total value of all your IRAs as of the
end of the prior year. That value is reported to the IRS, because the
value of each of your IRA is reported to the IRS each year. So they
know the amount and they know your age, so from that they can easily
compute the required RMD amount. You can also loik it up yourself in an
online table as long as you know all your IRA balances as of December
31st of prior year.

You can take the RMD anytime during the year you are required, and you
also get a one-time extension to April 1st of the following year for the
first year RMD only. And you can take the RMD in as many chunks during
the 15 months as you like. You can also take more than the minimum
amount if you want, though you won't get any credit for that the
following year.

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According to Boris <[email protected]d>:

My question is how does the IRS know if I'm taking the proper RMD?

The IRA trustee files form 5498 with the IRS which reports contributions and withdrawals. Lines 11 and 12 show the RMD. The trustee need not give you
or your adviser a copy of that form but they do have to provide the numbers
to you.

Also, do I have to take the entire RMD amount all at once, or can I take >multiple withdrawals?

You can spread it out over the year so long as the total is taken by
the deadline, April 1 the year after you turn 73, Dec 31 otherwise.
I gather it is common to take it monthly.

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John Levine, [email protected], Primary Perpetrator of "The Internet for Dummies",
Please consider the environment before reading this e-mail. https://jl.ly

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<< The foregoing was not intended or written to be used, >>
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On 5/12/25 12:35 PM, John Levine wrote:

According to Boris <[email protected]d>:

My question is how does the IRS know if I'm taking the proper RMD?

The IRA trustee files form 5498 with the IRS which reports contributions and withdrawals. Lines 11 and 12 show the RMD. The trustee need not give you
or your adviser a copy of that form but they do have to provide the numbers to you.

Also, do I have to take the entire RMD amount all at once, or can I take
multiple withdrawals?

You can spread it out over the year so long as the total is taken by
the deadline, April 1 the year after you turn 73, Dec 31 otherwise.
I gather it is common to take it monthly.

Also re the "First Year April 1 deadline", avoid it if possible, other
wise you would be dong 2 RMDs in the second year. :-(

Also be sure to take enough Withholding Tax on the RMDs to avoid any underwithhoding penalty.

--
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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
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John Levine <[email protected]> wrote:

Boris <[email protected]d>:

My question is how does the IRS know if I'm taking the proper RMD?

The IRA trustee files form 5498 with the IRS which reports contributions and >withdrawals. Lines 11 and 12 show the RMD. The trustee need not give you
or your adviser a copy of that form but they do have to provide the numbers >to you.

Also, do I have to take the entire RMD amount all at once, or can I take >>multiple withdrawals?

You can spread it out over the year so long as the total is taken by
the deadline, April 1 the year after you turn 73, Dec 31 otherwise.
I gather it is common to take it monthly.

It's common for the IRA beneficiary to have a trust account as well. Monies distributed from the IRA are deposited into the trust account, then
transferred into a checking account for personal expenses.

If monies in the trust account are invested similarly to the IRA, then
there's no disadvantage to taking the entire RMD in a lump sum early in
the following calendar year, then transferring to checking, say $5000 at
a time, as needed.

If the RMD is high enough, withhold 90% of this year's estimated tax
liability or 100% of last year's during December so it gets treated as
having been evenly withheld throughout the year to avoid penalties and
interest on quarterly estimated taxes that weren't timely paid.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
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According to Adam H. Kerman <[email protected]>:

You can spread it out over the year so long as the total is taken by
the deadline, April 1 the year after you turn 73, Dec 31 otherwise.
I gather it is common to take it monthly.

It's common for the IRA beneficiary to have a trust account as well. Monies >distributed from the IRA are deposited into the trust account, then >transferred into a checking account for personal expenses.

Huh, I never heard of that. What's the point rather than scheduling
the IRA distributions for when you want them?

My trustee (Vanguard) will do monthly, quarterly, or annual
distributions, point and click and set it the way you want.

--
Regards,
John Levine, [email protected], Primary Perpetrator of "The Internet for Dummies",
Please consider the environment before reading this e-mail. https://jl.ly

--
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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
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Boris <[email protected]d> wrote in news:[email protected]:

My question is how does the IRS know if I'm taking the proper RMD?

I have a financial advisor (a fiduciary) that has given me my RMD
amount for 2025. This will be the first year I make an RMD
withdrawal.

How does the IRS know if the amount given to me by my advisor is the
correct amount?

Also, do I have to take the entire RMD amount all at once, or can I
take multiple withdrawals?

Thanks.

Thanks much to all that replied.

I contacted my CPA, who works with my financial advisor. My CPA gave me
the exact RMD figures for both me and my wife. He will send us the
proper forms to take our RMDs when we decide to do so, and we can direct
where to deposit the distributions. Since our IRAs are held with
Schwab, I assume our CPA will forward our completed RMD forms to
Schwab.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
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Marc Auslander <[email protected]> wrote in news:tEJUP.811152$[email protected]:

On 5/12/2025 11:18 AM, Boris wrote:

My question is how does the IRS know if I'm taking the proper RMD?

I have a financial advisor (a fiduciary) that has given me my RMD
amount for 2025. This will be the first year I make an RMD
withdrawal.

How does the IRS know if the amount given to me by my advisor is the
correct amount?

Also, do I have to take the entire RMD amount all at once, or can I
take multiple withdrawals?

Thanks.

If you make significant charitable contributions, the Qualified
Charitable Distribution path can be of value.

Hello, Marc,

My advisor did suggest making a Qualified Charitable Distribution. At
this time, though, I'm concerned about one of my adult children, and determining how I can make a gift to her. Four months after she
purchased a home with a 2.99% mortgage, she got laid off from a well
paying job. She has not been able to find employment and has used all
of her sizeable 401(k) (un-beknowst to us).

I will be in contact with our estate planner and CPA about this issue
soon.

Thanks.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

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