Example: RMD required is $13887. Brokerage has withheld $1666 federal and $139 state taxes and transferred $12082 to my after-tax account. Have I met the requirement?
Thanks for replying. However, this being my first year of RMD, I don't yet have a 1099 that shows both taxable amount in box 1 and Federal Tax Withheld in box 4, so I don't know whether the amount I'm withdrawing will complete my requirement. IRS instructions don't seem to cover this, either.
"This" year - meaning 2017?
If this was a 2017 distribution then you will report it on your 2017 tax return next year in 2018 and you will have the 1099-R then.
Also if you turn 70 1/2 in 2017 then you have until April 1 of 2018 to take the first RMD (you would also have to take the 2018 RMD in addition before the end of 2018). That only applies to the *first* RMD for the year that you turn 70 1/2.
Thanks for your reply. I understand everything you've said; just bump it back a year, as first year of RMD was 2016 and I'm working on taxes for that year. The 1099-R I have in hand doesn't answer my question because all of that distribution was donations to charity, so naturally broker didn't take any withholding. If amount withheld does count toward RMD, then I'm golden, as we've withdrawn the proper remaining amount out to be taxed this year; if not, I have until March 1 to withdraw some more to complete last year's RMD.