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Level 2
posted Mar 4, 2025 8:38:21 AM

RMD (Required Minimum Distribution) prorating of Taxes (and maybe income)

I will take Required Min Distribution (RMD) from my IRA in Dec of this year, paying both Fed and State taxes (withholding) on that in Dec.

I want to report the uneven income I get on form 2210 (Fed) and 5805 (State) to avoid tax penalties.

 

  • Can I report BOTH the 2025 RMD Fed taxes AND State taxes actually paid in Dec, as though they were paid prorated during the year. For example, if I pay $12,000 of State taxes in Dec on my RMD taken in Dec, can I report that on State form 5805 as $3000 paid by end March (3 months), $5000 paid by end May (5 months), $9000 paid by end Sept (9 months) etc. Similarly can I prorate the Fed taxes on the Fed form 2210.

 

  • If I can do this (i.e. prorate the taxes paid), then do I report the INCOME from the RMD as prorated in the same manner as above OR can I report the income as received just in Dec (when it was actually received) - meaning the income shows as received in Dec but the taxes show as prorated throughout the year.

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1 Best answer
Level 15
Mar 4, 2025 8:45:40 AM

you don't have to.  the default method for withholding regardless of the actual date it was withheld is 1/4 is deemed paid each tax quarter so by December you'll be at 100%. the benefit is that you'll get credit for it in the first 3 quarters even though it hasn't yet been paid.

 

3 Replies
Level 15
Mar 4, 2025 8:45:40 AM

you don't have to.  the default method for withholding regardless of the actual date it was withheld is 1/4 is deemed paid each tax quarter so by December you'll be at 100%. the benefit is that you'll get credit for it in the first 3 quarters even though it hasn't yet been paid.

 

Level 2
Mar 6, 2025 10:52:35 AM

So if I take the RMD in Dec AND prorate the withholding as if they were taken quarterly (on form 2210 to avoid penalties) then how do I report the actual  distribution taken in Dec

 

Do I report that distribution as taken only in Dec

 

OR

 

Do I report that distribution protated in the same way the witholdings are

 

Expert Alumni
Mar 12, 2025 2:52:52 PM

You can prorate the distribution also.

 

If you're working with Form 2210, actually you can take your annual income, divide by four, and report that amount as quarterly income.

 

Here's more info on Form 2210.

 

@ChallengedinCA