Use RMD to Cover Tax Withholding

Very good! I have been having taxes withheld from SS payments, but it reduces our net SS each month. Your strategy delays the withholding to the end of the year, keeping our investments working for us all year. Thanks!

You can do this for any IRA distribution, not just an RMD, right?

Mike that makes perfect sense 😮... Just NEVER thought about it til now..

25K RMD and 18K in taxes, wow, they must be doing well in retirement.

If the total rmd across multiple account is 19.5k and withraw rmd only from one account for 20k and out of 20k Itold them to withhold 2k for tax. My question is did i satisfy my rmd of 19.5k with that scenario? I. I guess my question is the tax witholding part of my distribution right? It doesn't matter if part of it went into tax. I still decreased the balance by 20k. I dont know if i have to take out 19.5k plus 20%tax to satisfy my Rmd of 19.5k.

If my taxes are more than the RMD can I take more than the RMD withhold almost all in tax but roll the excess of the RMD back into the IRA, so it does not contribute to my taxable income?

Today is April 17, 2024. Two days ago I filed my 2023 taxes. My Total tax (Line 24) was $8,075.
I am 71 years old.
Am I correct that if, on December 15, 2024, I distribute $8,075 (withholding 100%) from my pre-tax IRA, I will have fulfilled my 2024 tax obligation?

So am I understanding correctly? I would ask the holder of my IRA to take out taxes at the time of my RMD in the amount of say, 35% instead of 30% knowing that this increase will cover the difference for our other incomes (pensions).

Withholding the tax due for the year for all income from the RMD also eliminates the penalty for not filing estimated taxes. Reason is the withheld tax is assumed to have been paid equally during the year. To determine how much to withhold you would need to do a calculation in December to estimate your income and the tax due.

Nine years retired, taking RMD and SS. I wish I knew this 9 years ago!! Great advice for my situation.

I can't take a large IRA distribution in the fall without paying estimated taxes quarterly.

tell them....learn how to estimate your income..and pay quarterly payments....

Aren’t you still required to pay taxes in the quarter in which the income is derived??? So, to avoid tax penalties and interest, you’d have to find some money source (your IRA?) to pay estimated taxes on a quarterly basis… right? And, you’d have to pay taxes on the IRA withdrawals as well… right?

Personally I find it much easier to pay quarterly estimated tax (federal and state). It is easier for me than trying to get social security and my retirement account holders to withhold the right amount of tax. And if my tax outlook changes during the year, I can modify my quarterly payments.