MinhT1
Expert Alumni

Get your taxes done using TurboTax

It is better to request a Federal withholding of say, 20% at the time of withdrawal. Otherwise, you'll have to make an estimated tax payment.

 

The tax owed on your RMD withdrawal will be the same whether you have withholding taxes or not. The withholding taxes will serve as a credit against your tax liability. If you do not withhold or do not pay estimated taxes, you may have to pay a penalty for underpayment of estimated taxes when you file your taxes.

 

Please read this IRS document for more information.

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