Personal Finance and Investing

question everything

(48,671 posts) Sun Jan 30, 2022, 04:04 PM Jan 2022

Is anyone planning on taking RMD from Vanguard and has received the information?

Their calculations are wrong, wrong, wrong.

Publication 520 Appendix B Table III lists the denominators which go down as we age.

For spouse they have used the denominator for a two years younger person. For mine - a number which is not even in the table!

Have been calculating it again and again.

Correction. My denominator is in.. for someone two years younger. It was used for my 2020 RMD

14 replies

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Is anyone planning on taking RMD from Vanguard and has received the information? (Original Post) question everything Jan 2022 OP

I don't have my numbers. DURHAM D Jan 2022 #1

I got an email that the confirmation was ready question everything Jan 2022 #3

Check the date on the table Yonnie3 Jan 2022 #2

The most recent one I found was for 2020, the same. question everything Jan 2022 #4

IRS apparently hasn't issued it - I could't find it either Yonnie3 Jan 2022 #5

Thank you. Yes, I am looking at the Uniform Lifetime and they switched everything by two years question everything Jan 2022 #7

Maybe they changed it based Turbineguy Jan 2022 #8

It is based on an increased life expectancy n/t Yonnie3 Jan 2022 #9

I just looked at my Vanguard account Yonnie3 Jan 2022 #6

The RMD charts were changed at 74 mine was 24.7, it was changed to 25.5 this year. doc03 Jan 2022 #10

You found it on irs.gov? question everything Jan 2022 #11

I think that is where I got it. Federal Register/Vol. 85 No. 219/ Thursday November, 12, 2020/ doc03 Jan 2022 #12

Here is the chart scroll down to Uniform Lifetime Table III doc03 Jan 2022 #13

Thank you. Yes, same link that Yonnie3, above provided question everything Jan 2022 #14

DURHAM D

(32,826 posts)

1. I don't have my numbers.

Reply to question everything (Original post)

Sun Jan 30, 2022, 04:26 PM

Jan 2022

Do you get yours online?

question everything

(48,671 posts)

3. I got an email that the confirmation was ready

Reply to DURHAM D (Reply #1)

Sun Jan 30, 2022, 04:37 PM

Jan 2022

So I found it and printed.

But if you go to your account, look for retirement contribution, distribution and RMD section.

Once there, go to View your status or take a distribution.

It shows you the amount you need to take based on the value at the end of the year and on a denominator - iRS Life expectancy factor.

The ones for me, and for my spouse, were used two years ago.

If you have taken RMD before, you can view the the RMD calculation history and there, lo and behold was the same current factor for 2020.

Hope this helps. I am hoping back and forth between this reply and my account on Vanguard.

Yonnie3

(18,044 posts)

2. Check the date on the table

Reply to question everything (Original post)

Sun Jan 30, 2022, 04:29 PM

Jan 2022

I believe it changed for 2022

question everything

(48,671 posts)

4. The most recent one I found was for 2020, the same.

Reply to Yonnie3 (Reply #2)

Sun Jan 30, 2022, 04:38 PM

Jan 2022

Perhaps I need to go back for 2022

Nope, 2020 is the most recent

Yonnie3

(18,044 posts)

5. IRS apparently hasn't issued it - I could't find it either

Reply to question everything (Reply #4)

Sun Jan 30, 2022, 04:45 PM

Jan 2022

https://thefinancebuff.com/new-rmd-tables-2022.html

https://www.forbes.com/sites/bobcarlson/2022/01/14/dont-forget-new-rmd-rules-for-iras-in-2022/

For 72 the old table had 25.6 and the new table reported has 27.4 which happens to be the same as 70 in the old table.

question everything

(48,671 posts)

7. Thank you. Yes, I am looking at the Uniform Lifetime and they switched everything by two years

Reply to Yonnie3 (Reply #5)

Sun Jan 30, 2022, 04:55 PM

Jan 2022

Since originally people had to start taking at 70.5 and now at 72.

This is why Vanguard is using the same factor that it used two years ago.

So much fun for people who do their own taxes and don't mind reading tax forms and publications.

I visited the site a few days ago to look at current forms and publications and agreed to provide feedback which was quite good.

Now I wish I knew about this..

Turbineguy

(38,256 posts)

8. Maybe they changed it based

Reply to Yonnie3 (Reply #5)

Sun Jan 30, 2022, 05:14 PM

Jan 2022

on the reduction in life expectancy thanks to trump.

I expect if trump returns, there will be many people who get their inheritance early.

Yonnie3

(18,044 posts)

9. It is based on an increased life expectancy n/t

Reply to Turbineguy (Reply #8)

Sun Jan 30, 2022, 05:24 PM

Jan 2022

Yonnie3

(18,044 posts)

6. I just looked at my Vanguard account

Reply to question everything (Reply #4)

Sun Jan 30, 2022, 04:53 PM

Jan 2022

The RMD they calculated for me uses the new un-issued table. The RMD amount divided by the year end balance is exactly the table's number for my age.

doc03

(36,518 posts)

10. The RMD charts were changed at 74 mine was 24.7, it was changed to 25.5 this year.

Reply to question everything (Original post)

Sun Jan 30, 2022, 05:32 PM

Jan 2022

I found the new chart on the irs.gov. I divided my IRA balance by 25.5 and it was right to the penny.
I took mine already got the check.

question everything

(48,671 posts)

11. You found it on irs.gov?

Reply to doc03 (Reply #10)

Sun Jan 30, 2022, 05:42 PM

Jan 2022

Just been there and it still sends visitors to the same 2020 Pub. 540?

The whole section till talks about RMDs were suspended in 2020..

Perhaps I need to refresh the page. Somehow.

doc03

(36,518 posts)

12. I think that is where I got it. Federal Register/Vol. 85 No. 219/ Thursday November, 12, 2020/

Reply to question everything (Reply #11)

Sun Jan 30, 2022, 05:54 PM

Jan 2022

Last edited Sun Jan 30, 2022, 06:39 PM - Edit history (1)

Rules and Regulations

Tabel 2 to paragraph (C)
72 27.4
73 26.5
74 25.5
75 24.6
76 23.7
77 22.9
78 22.0
79 21.1
80 20.2

I also get a RMD from T. Rowe Price they used the same RMD as Vanguard.

Here you go scroll down to Uniform Lifetime Table III

https://thefinancebuff.com/new-rmd-tables-2022.html#htoc-new-rmd-tables-effective-january-1-2022

doc03

(36,518 posts)

13. Here is the chart scroll down to Uniform Lifetime Table III

Reply to question everything (Reply #11)

Sun Jan 30, 2022, 06:43 PM

Jan 2022

https://thefinancebuff.com/new-rmd-tables-2022.html#htoc-new-rmd-tables-effective-january-1-2022

question everything

(48,671 posts)

14. Thank you. Yes, same link that Yonnie3, above provided

Reply to doc03 (Reply #13)

Sun Jan 30, 2022, 07:29 PM

Jan 2022

Not irs.gov.

Never heard of thefinancebuff.com. Perhaps I should become acquainted with this site.

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