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Level 2
June 5, 2019
Solved

RMD Taxes on additional amount

  • June 5, 2019
  • 12 replies
  • 19 views

My RMD amount for 2017 was $8,200 but I took additional amount $1,800 that makes total withdrawal amount $10,000. I opted 10% withholding. How my tax will be calculated for the additional amount?

    Best answer by Hal_Al

    You're allowed to take out more than the RMD amount, without penalty. The $1800 will be taxed the same as the $8200. It will only be taxed more if the addition to your total income pushes you into the next tax bracket. 

    You can use this tool to see the effect of adding income https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

    12 replies

    Hal_Al
    Level 15
    Hal_AlLevel 15Answer
    Level 15
    June 5, 2019

    You're allowed to take out more than the RMD amount, without penalty. The $1800 will be taxed the same as the $8200. It will only be taxed more if the addition to your total income pushes you into the next tax bracket. 

    You can use this tool to see the effect of adding income https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

    Alumni - Champ
    June 5, 2019
    fanfare
    Level 15
    June 5, 2019

    It is all ordinary income. If your marginal income tax rate is 25% you will probably owe more tax at tax time.

    Alumni - Champ
    June 5, 2019
    plus State taxes as applicable.