Withholding for Inherited IRA RMD

[glerbnik84]

I took the RMD from my inherited IRA account for the 2024 tax year.  I was uncertain which withholding percentage I should choose for Federal tax.  I opted for the percentage equating to my tax bracket for the 2023 tax year.  My 2024 income will place me in a higher tax bracket.  

If my withholding from all income sources for 2024 exceeds my 2023 tax liability, am I correct in assuming that I will not be subject to a penalty for having chosen a withholding percentage for the RMD that is less than my 2024 tax bracket?

Thanks in advance for your insights!

[Bsch4477]

Correct. 

[dmertz · Accepted solution]

If your 2023 AGI was more than $150,000 ($75,000 if married and filed separately), it will need to be at least 110% of your 2023 tax liability to qualify for this safe harbor, otherwise tax withholding of at least 100% of 2023 tax liability is sufficient.

You might also what to check state tax withholding to see if it's sufficient.

[glerbnik84]

Thank you!

[glerbnik84]

Thank you for your reply, and for your advice about checking on the state income tax!