IRA RMD distribution periodic or non periodic payment
If you received only the RMD payments based on the life expectancy table from your IRA accounts every year, is that considered periodic payments? The payments come monthly.
If you received only the RMD payments based on the life expectancy table from your IRA accounts every year, is that considered periodic payments? The payments come monthly.
Permalink Submitted by Alan - IRA critic on Wed, 2018-02-21 23:59
No, RMDs are not periodic payments. The term periodic payments usually relates to the withholding rules for annuity distributions. Since this is an IRA, the annuity withholding rules do not apply. Is this why you are asking if RMDs are periodic payments? For all IRA distributions the default withholding rate is 10%, but you can have that increased if you want or you can decline it. For example, you may be paying quarterly estimates based on your total income and then you would decline withhholding. But if your RMDs are large enough you could elect withholding at a high enough rate to eliminate the need to pay quarterly estimates.