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Level 1
posted Jun 26, 2024 3:51:24 PM

RMD timing

Are the taxes on RMDs more if taken monthly vs. once a year?

1 1 2567
1 Best answer
Expert Alumni
Jun 26, 2024 3:56:22 PM

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 Replies
Expert Alumni
Jun 26, 2024 3:56:22 PM

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