NM,
First of all...I'm not a Fed HR person, an accountant, a lawyer, a financial planner, an investment guru, or a tax advisor !!! I'm just a retired Fed schmoo like many of us here !!! Feel free to ignore everything I say !!!
I understand your reluctance to listen to your custodian's pitch for some other option, other than withdrawal...but geez....don't forget...It's YOUR money, not theirs !!! Do you have a financial planner, or a tax advisor ? Ask them !!!
I went through that when we rolled the Wife's 403(b) over to her IRA...just hang tough, and make it clear...you know what you're doing...escalate it up the organization, if you have to...
I have no answer for your question about RMD's, and stocks/bonds becoming cash. I thought you had to have a cash balance in the IRA equal to the amount withdrawn, but just for grins, I went in to my USAA Traditional IRA account and "applied" for a cash withdrawal...very simple...asked me how much, where is it going (account), and what tax withholding I wanted on it (minimum of 10% Fed). When I plugged in a one-time amount that exceeded my available cash balance, it didn't even hiccup. The next step was "Submit", but I didn't want to actually DO that, so I cancelled out !
Perhaps it would've flagged it, and given me options on what to sell, but I'm not going there, for this theoretical exercise ! Perhaps an equal weight across all holdings ? Don't know...
I also don't understand why people get riled up by the RMD, either...face it...Uncle Sam is gonna get their cut, either from you, or your heirs, eventually !
Me ? I have no Kids, and I'm not worried about the tax effect on those who benefit from my "good will", when I croak...let THEM figure it out, IF there is anything left !!!
Have you ever actually run your RMD numbers ? Check out the IRS worksheet :
https://www.irs.gov/pub/irs-tege/uniform_rmd_wksht.pdf
Now, if I understand this correctly, my RMD has to be spread out equally over 27 years !!!
That means my IRA has to be fully withdrawn at age 97 !!! I don't know about you, but if I make it to age 80, I'll be happy !!!
Somebody/anybody can chime in here, and point out the errors of my ways !!!
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