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