dmertz
Level 15

Retirement tax questions

The mandatory 20% withholding is only on the amount eligible for rollover, so if $80k had been the RMD and the $180k was all reported on a code 7 Form 1099-R, only 20% of $100 would be required to be withheld.  But you are right, with only $21k being RMD it doesn't add up.