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Get your taxes done using TurboTax
In most cases, it shouldn't be necessary to calculate estimated tax on RMDs. But if RMDs are a large part of your income, you could do it like this: Take the Dec. 31, 2020 balance in your account and divide it by your life-expectancy factor; most people can take them from the table at https://smartasset.com/retirement/rmd-table. That gives you the amount of your RMD. Multiply it by your marginal tax rate (find your bracket at https://www.kiplinger.com/taxes/tax-brackets/602222/what-are-the-income-tax-brackets-for-2021-vs-202...), and that gives you an estimate of what your tax will be. Do not pay it now; it is not due till you file your 2021 tax return in early 2022.
March 21, 2021
1:27 PM