(my first RMD distribution from my 401k being a New York resident)
Question, in 2025, I will be receiving my first RMD distribution from my traditional 401k employment benefit being 73 years old. My employment Benefit Center advises my I can have my RMD - Federal tax from my 401k withheld by them and they will make payment to the IRS. However, they do not withhold New York State tax due on the distribution, they require I do that myself. Question: I do not plan on requesting my first RMD payment until Oct/Nov of 2025. Once my RMD payment is requested it will take about five days to hit my checking bank account, can I at that time Oct/Nov just make a estimated tax payment to New York State Dept. of Finance (on their web) to satisfy the tax due? Will I be compliant doing it in that method?
Yes. You can wait until you have received your RMD and then make an estimated payment to New York online. You will be compliant if you do as you described. To make a New York estimated tax payment online, click on the following link: Pay New York Estimated Tax
For additional information on paying New York estimated tax, see the following Estimated taxes
Am I correct I do not need to make a estimated tax payment in New York until I actually receive my RMD distribution in Oct/Nov? and no late penalty will apply? thanks again!
Yes, you are correct. Estimated tax payments, when necessary are made quarterly according to income received and the estimated tax on that income. The payment due date of the fourth quarter is January 15th. The only penalty for not making an estimated tax payment is really just an interest charge on the amount that should have been paid, but only if you owe tax when you file. There is no penalty for not making an estimated payment. If you have enough withheld from other sources, or don't owe any tax, no estimated tax payments are necessary. If you do make a fourth quarter estimated tax payment, you should do so on or before January 15, of 2026.