RMD Taxes on additional amount
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?
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?
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/
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