In an inherited IRA account at Vanguard, I executed the order to take my yearly RMD on December 29, 2023, before the close of trading. I placed a sell order for the appropriate amount of shares, with the proceeds to be sent to me as a check which I believe was the only option for taking a distribution from this account.
Looking at my transaction history, it shows a trade date of 12/29/2023 but a settlement date of 1/2/2024. And indeed it looks like Vanguard has applied the distribution to the 2024 tax year, meaning I missed my 2023 RMD. And the tax withholding that I requested be taken from the distrubution was ALSO applied to 2024 instead of 2023. What a mess. Did I screw this up or did Vanguard? I was under the impression that as long as I enter the order for the distribution before the close of trading on the last trading day of the year, it would count as a 2023 RMD. Is this wrong?
Looking at my transaction history, it shows a trade date of 12/29/2023 but a settlement date of 1/2/2024. And indeed it looks like Vanguard has applied the distribution to the 2024 tax year, meaning I missed my 2023 RMD. And the tax withholding that I requested be taken from the distrubution was ALSO applied to 2024 instead of 2023. What a mess. Did I screw this up or did Vanguard? I was under the impression that as long as I enter the order for the distribution before the close of trading on the last trading day of the year, it would count as a 2023 RMD. Is this wrong?
Statistics: Posted by ancho — Mon Mar 04, 2024 8:43 pm — Replies 3 — Views 362