I have been working at consolidating my mom’s accounts. She is down to two IRAs: one at Vanguard and an annuity at Security Benefit. I have tried (and failed) twice to surrender the annuity IRA and do a trustee to trustee transfer to her Vanguard IRA. Now I’m considering brute forcing it by doing a 60 day rollover. She hasn’t done a 60 day rollover in the past, and this is the final IRA consolidation so I wouldn’t anticipate needing to do any more 60 day rollovers.
It sounds like RMDs have to be taken before completing the 60 day rollover. I understand that you can aggregate IRA RMDs and take them from whichever account you prefer, but I’m considering the following:
- Take her Vanguard RMD from her Vanguard IRA ASAP
- Request surrender of Security Benefit IRA annuity (has not been annuitized yet) and have them deposit 100% of proceeds to her checking account. Request no taxes be withheld as she typically owes no taxes.
- Write a check to Vanguard (or just transfer funds?) to her existing IRA for the amount of the Security Benefit withdrawal minus the Security Benefit RMD amount.
Questions:
* Does this satisfy the requirement of the RMDs being taken before doing the 60 day rollover? (I’m not 100% certain as to whether the RMD needs to be withdrawn as a separate transaction first).
* I was thinking of not aggregating the RMDs in case one of my siblings eventually takes over Mom’s finances so it’s more obvious that the RMDs were taken. Is it better to just aggregate them instead?
* What’s the best way to get the money to Vanguard, and am I supposed to let them know somehow that it’s a 60 day rollover?
* Are there any other gotchas and/or is this a terrible plan? Thanks!
It sounds like RMDs have to be taken before completing the 60 day rollover. I understand that you can aggregate IRA RMDs and take them from whichever account you prefer, but I’m considering the following:
- Take her Vanguard RMD from her Vanguard IRA ASAP
- Request surrender of Security Benefit IRA annuity (has not been annuitized yet) and have them deposit 100% of proceeds to her checking account. Request no taxes be withheld as she typically owes no taxes.
- Write a check to Vanguard (or just transfer funds?) to her existing IRA for the amount of the Security Benefit withdrawal minus the Security Benefit RMD amount.
Questions:
* Does this satisfy the requirement of the RMDs being taken before doing the 60 day rollover? (I’m not 100% certain as to whether the RMD needs to be withdrawn as a separate transaction first).
* I was thinking of not aggregating the RMDs in case one of my siblings eventually takes over Mom’s finances so it’s more obvious that the RMDs were taken. Is it better to just aggregate them instead?
* What’s the best way to get the money to Vanguard, and am I supposed to let them know somehow that it’s a 60 day rollover?
* Are there any other gotchas and/or is this a terrible plan? Thanks!
Statistics: Posted by Fernweh — Sun Jan 12, 2025 1:27 pm — Replies 0 — Views 66