Permalink Submitted by Alan - IRA critic on Tue, 2016-02-16 16:02
Estimated tax requirements are based on your total expected taxes due, not on any one particular source of income. If you are already paying estimated taxes on other income, RMDs will increase the amount of taxes due depending on the amount of the RMD. Many people also have withholding taken from their RMD in an amount sufficient to eliminate any quarterly estimated tax payments. And withholding is preferable in that it is considered paid equally throughout the year even when the RMD distribution is not taken until December.
Permalink Submitted by Alan - IRA critic on Tue, 2016-02-16 16:02
Estimated tax requirements are based on your total expected taxes due, not on any one particular source of income. If you are already paying estimated taxes on other income, RMDs will increase the amount of taxes due depending on the amount of the RMD. Many people also have withholding taken from their RMD in an amount sufficient to eliminate any quarterly estimated tax payments. And withholding is preferable in that it is considered paid equally throughout the year even when the RMD distribution is not taken until December.