Fidelity, Vanguard Easily Manage Required Minimum Distributions

August 25th, 2007  |  Published in Disbursements, IRA  |  2 Comments

After writing the article on required minimum distributions, I checked with some popular retirement brokerages and saw that many of them handle required minimum distributions quite gracefully.

At Vanguard, they will:

* Calculate your RMD. Each January, we’ll notify you by mail of the amount you must distribute by year-end.
* Distribute your RMD, if you wish. We can automatically transfer your money to a Vanguard® nonretirement account or deposit it at your bank.
* Keep you posted. You’ll receive statements by mail, and you can track your progress online at any time.

Fidelity (a PDF about their “Personal Withdrawal Service”) also offers similar services but it’s a little harder to get at since it’s written into a PDF document and not with high level bullet points like Vanguard’s.

RMDs are a very well understood item in retirement when it comes to IRAs so if your current brokerage doesn’t handle it, I’d recommend finding another one.

  

Responses

  1. walt padabney says:

    August 29th, 2007 at 5:27 pm (#)

    The problem with the auto RMD features is the loss of control over investment selection in that process. Since the IRS allows me to make a single distribution based on the aggregate of my accounts, I like to determine in advance which assets to liquidate. Then, I send some of it back into my Trophy Wife’s account for a deduction.. She’s only 68… a real slop jockey…

  2. Important Retirement Ages :: My Retirement Blog says:

    February 27th, 2008 at 4:43 pm (#)

    […] 70 ½: When you turn 70 ½, you are now required to take distributions from IRAs, also known as required minimum distributions or RMD. […]