Automatic Spreading of RMD Withholding

I pay quarterly taxes. When I withdraw the RMD from my 401K in November an amt for federal tax is withheld. The IRS permits me to account that amt as if it was paid in equal amounts over the 4 quarters of the year even though it was actually all paid at once in November. Does the Premier Edition of Turbo Tax automatically do that spreading behind the scenes? I can't find it shown explicitly anywhere in the program.

414

Level 15

Jan 26, 2022 7:47:28 AM

The "spreading" of the tax withheld is automatic in the IRS calculation of any possible penalty. It's not shown explicitly in TurboTax or anywhere on the tax return. The tax withheld is not treated as quarterly estimated tax payments. It's a whole separate category. The only hint you will see that it's treated differently is that tax withheld is on Form 1040 lines 25a through 25d, and quarterly estimated tax payments are on a separate line, line 26.

Level 2

Jan 29, 2022 6:30:53 AM

Thanks. Exactly the answer I needed.

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Automatic Spreading of RMD Withholding