@VolvoGirl wrote:
Yes you will need to replace the withholding with some other money or the withholding will become a taxable distribution. So you might owe some tax on the 10,000 on your return next year. But either way you will get credit for the 10,000 withholding.
There would be nothing owed for the tax withheld if the entire amount of RMD is rolled over having made up for the withholding from other funds.. Money is fungible so it does not matter which pocked it comes from. No different than if there was NO tax withhold but estimated tax was paid separately to the IRS from other funds - the estimated tax would be recovered on the 2020 tax return the same way.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
