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Level 2
posted Mar 5, 2020 12:20:59 PM

Am I taxed twice on an RMD? If I choose to reinvest the RMD in a taxable account, am I taxed on that upon withdrawals?

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1 Replies
Expert Alumni
Mar 5, 2020 12:42:34 PM

Money received from an RMD is considered as after tax dollars for you.

 

And if you choose to invest it in a taxable account, then only the earnings from that account are taxable. Withdrawal of the principal invested will not be taxed. So there is no double taxation.