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Are Pennsylvania taxes withheld from an RMD treated like federal taxes and are assumed spread over the entire year thereby eliminating the need for state estimated tax

I understand that PA does not tax RMDs but I would like withholding to cover taxes on other investments.  I would like to take my RMD in December.

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5 Replies

Are Pennsylvania taxes withheld from an RMD treated like federal taxes and are assumed spread over the entire year thereby eliminating the need for state estimated tax

Ask the financial institution where your retirement plan is held if they will withhold state tax on a distribution. 

I assume that you are aware that you don’t have to take a RMD in2020. 

Are Pennsylvania taxes withheld from an RMD treated like federal taxes and are assumed spread over the entire year thereby eliminating the need for state estimated tax

My IRA custodian will withhold Pennsylvania taxes.  This is not for 2020.  I'm planning for 2021.  My real question is if I take my RMD in December will the Pennsylvania withholding be treated as if if was spread over the entire year (like federal withholding).  This would mean that I can eliminate quarterly Pennsylvania estimated taxes and not receive a penalty.

Are Pennsylvania taxes withheld from an RMD treated like federal taxes and are assumed spread over the entire year thereby eliminating the need for state estimated tax

Tax withheld on a distribution taken in December, 2021, will be considered as have been taken throughout 2021. 

Are Pennsylvania taxes withheld from an RMD treated like federal taxes and are assumed spread over the entire year thereby eliminating the need for state estimated tax

Is this true for Pennsylvania taxes?  (I know that that is true for Federal but I can't find anything about this for Pennsylvania)....Thank you.

Are Pennsylvania taxes withheld from an RMD treated like federal taxes and are assumed spread over the entire year thereby eliminating the need for state estimated tax

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