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Best answer by mtufaro

Since RMD is calculated for a full tax year, it should not make a difference if you take the RMD in a lump sum during the tax year or if you take it on a monthly, quarterly or something else.  Since the sum of the smaller payments during the tax year equal the RMD amount if it was done in a lump sum, the income and the tax would be the same.

 

Thanks again for the question @jf313   

 

All the best,


Marc 

Employee Tax Expert

1 reply

mtufaroAnswer
Level 7
June 26, 2024

Since RMD is calculated for a full tax year, it should not make a difference if you take the RMD in a lump sum during the tax year or if you take it on a monthly, quarterly or something else.  Since the sum of the smaller payments during the tax year equal the RMD amount if it was done in a lump sum, the income and the tax would be the same.

 

Thanks again for the question @jf313   

 

All the best,


Marc 

Employee Tax Expert