Estimated tax for 2023--amt to send from RMD--conflicting info

[dmertz]

Section 6654(g) of the tax code indicates that withholding from all sources is by default treated as withheld evenly throughout the year.  However, it does allow the tax payer to choose that withholding from wages be treated as payed when withheld (the same as the treatment required for estimated tax payments), separately from the choice to treat withholding from all other sources as paid when withheld.  RMDs, as is any income reportable on some type of Form 1099, are a source of income other than wages from which taxes can be withheld.

[Lani6]

Thank you for chiming in. I'm sorry to be dense, and I understand that the interpretation is the"default treatment of tax withholding as being received evenly throughout the year." But I find no reference in the 2210, Instructions to 2210, or Code section 6654(g) that specifically includes a reference to the words "Required Minimum Distribution" or the acronym "RMD." 

    As I said, I have read a couple of articles that state "IRS has a special rule" favorable to taxpayers, so I was hoping someone knew of an IRS citation that specifically included the terms "Reqired Minimum Distributions" or "RMD's." Section 6654(g) does not mention those terms, and I have read no references to other IRS documents, such as a regulation or revenue ruling that specifically mentions those terms. If my return were examined, it would be much easier to have a reference that specifically included RMD's rather than just saying "IRS allows withholding on these distributions" or "IRS has a special rule" (but I don't have it).  I hope I have conveyed the distinction I am trying to make between the generalization about withholding and having a citation that specifically references RMD's. I don't mean to belabor the point. If there is nothing specific, so be it. But thank you dmertz and Volvo Girl for the information you provided.

[VolvoGirl]

Have you seen IRS pub 575?  Withholding is on page 9.  Don't know if it will answer any of your questions.  I don't think there is any difference with withholding from a RMD and from other kinds of distributions from IRA or 401K.  Withholding is just withholding.  

https://www.irs.gov/pub/irs-pdf/p575.pdf

[dmertz]

With regard to the application of tax withholding, there is nothing special about an RMD, so there is no reason for specific mention of RMDs.  An RMD is just a distribution that is reported on Form 1099-R, a type of Form 1099 that reports income from which taxes can be withheld.  The federal tax withholding reported on Forms 1099 falls under the definition provided in section 6654(g)(2)(B).  The same rules apply to federal tax withholding reported on all Forms 1099 regardless of the specific type of income.  As such, section 6654(g)(2)(B) and the instructions for Form 2210 make no further distinction among the various types of income reportable on Forms 1099 because there is no need to do so.

[VolvoGirl]

There's nothing on your tax return that says it is a RMD.  The 1099R isn't coded or says it's the RMD.  When you enter the 1099R in Turbo Tax and you are over a certain age it will ask you if it was for the RMD.   That's only to check if you took it and it's the right amount or you have to pay a penalty if you didn't take out the RMD or not enough.  And it needs to know if it was the RMD so you can't roll it over to another account or convert it to a ROTH account.  

[smidge]

Does Cslifornia follow the special IRS withholding  rule for state taxes, i.e., can  i withhold state taxes from a December IRA distribution to cover all state taxes owed and avoid an underpayment penalty?