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Level 2
posted Apr 11, 2025 1:54:26 PM

I'm curious about inherited IRAs and RMDs. I took more than the RMD and now I'm wondering if I paid "extra" tax. Why does the fed form ask for the RMD amount? And in NJ, why does the state form ask for the total IRA holdings as of year end?

0 4 667
4 Replies
Expert Alumni
Apr 11, 2025 2:01:24 PM

No, the required minimum distribution is the minimum amount you must start out every year.  It is taxed like any other distribution, but now, after you reach 73, if you do not take the minimum out, you pay the penalty.  

Level 2
Apr 13, 2025 7:47:26 PM

I’m not 73 (or anywhere near). It’s an inherited IRA from a parent who was required to takes RMDs. I know I have to take an RMD (at least) and that it has to be depleted within 10 years, but the RMD is based on my own age. Thus my question about taking more than the minimum from this inherited IRA since I am not 73.

Level 15
Apr 13, 2025 7:53:49 PM

Well you pay tax on the amount you take out.  So if you took out more than the RMD yes you will pay more tax.  But you probably had more withholding taken out on it too.  

Level 2
Apr 14, 2025 4:50:00 AM

Zero withholding. I am trying to understand why the software needed to capture the RMD amount (was it to check that I took at least the RMD, which I did?) and why the software on the state side needed to capture the total value of all IRAs.