turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Can I withhold my fed prepayment tax amount from my RMD in December to avoid making costly prepayments throughout the year?

I read the withholding is considered evenly throughout the year even if one distribution. This is important as I have rental income and social security also.

1 Best answer

Accepted Solutions
Rachel_W
Expert Alumni

Can I withhold my fed prepayment tax amount from my RMD in December to avoid making costly prepayments throughout the year?

You are correct, any tax withholding is considered paid evenly throughout the year.  So yes, it is perfectly acceptable to have taxes withheld from your RMD in December to cover your taxes for the year.  This is assuming your RMD is large enough to cover your tax liability.

I would recommend double checking with the Financial Institution to make sure they don't impose their own limit on withholding. 

View solution in original post

1 Reply
Rachel_W
Expert Alumni

Can I withhold my fed prepayment tax amount from my RMD in December to avoid making costly prepayments throughout the year?

You are correct, any tax withholding is considered paid evenly throughout the year.  So yes, it is perfectly acceptable to have taxes withheld from your RMD in December to cover your taxes for the year.  This is assuming your RMD is large enough to cover your tax liability.

I would recommend double checking with the Financial Institution to make sure they don't impose their own limit on withholding. 

Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing

Related Content

Manage cookies