1099R taxes

[mworster]

Are taxes that were withheld from my 1099R (RMD Distribution) treated as being withheld evenly throughout the year? In my case I took my RMD in late December and had custodian withhold taxes at that time. Until I took  the RMD distribution I never really had much income that would trigger estimated tax payments during the year.

I plan on using the annualized income form to support that I actually had no taxable income (after deductions) until the 4th quarter. I'm I correct in thinking that the withheld taxes in December via my RMD distribution (which would cover an amount equal to or more than my actual tax) wouldn't create a "penalty" for underpayment during the year?

[RachelW33]

Yes, you are correct in your thinking that the taxes that are withheld from your RMD Distribution are treated as being withheld evenly throughout the year regardless of when the withholding occurred. 

For more information, please see IRS Tax Topic 306.