Use RMD to Cover Tax Withholding
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- เผยแพร่เมื่อ 22 มิ.ย. 2023
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Mike Bernard, CFP® offers advisory services through KFG Wealth Management, LLC dba Korhorn Financial Group. This information is for general financial education and is not intended to provide specific investment advice or recommendations. All investing and investment strategies involve risk, including the potential loss of principal. Asset allocation & diversification do not ensure a profit or prevent a loss in a declining market. Past performance is not a guarantee of future results.
Very good! I have been having taxes withheld from SS payments, but it reduces our net SS each month. Your strategy delays the withholding to the end of the year, keeping our investments working for us all year. Thanks!
Mike that makes perfect sense 😮... Just NEVER thought about it til now..
Today is April 17, 2024. Two days ago I filed my 2023 taxes. My Total tax (Line 24) was $8,075.
I am 71 years old.
Am I correct that if, on December 15, 2024, I distribute $8,075 (withholding 100%) from my pre-tax IRA, I will have fulfilled my 2024 tax obligation?
So am I understanding correctly? I would ask the holder of my IRA to take out taxes at the time of my RMD in the amount of say, 35% instead of 30% knowing that this increase will cover the difference for our other incomes (pensions).
If the total rmd across multiple account is 19.5k and withraw rmd only from one account for 20k and out of 20k Itold them to withhold 2k for tax. My question is did i satisfy my rmd of 19.5k with that scenario? I. I guess my question is the tax witholding part of my distribution right? It doesn't matter if part of it went into tax. I still decreased the balance by 20k. I dont know if i have to take out 19.5k plus 20%tax to satisfy my Rmd of 19.5k.
If my taxes are more than the RMD can I take more than the RMD withhold almost all in tax but roll the excess of the RMD back into the IRA, so it does not contribute to my taxable income?
25K RMD and 18K in taxes, wow, they must be doing well in retirement.
You can do this for any IRA distribution, not just an RMD, right?
Yes. Washing my quarterly estimated tax payments through my IRA is how I delay paying until the end of the year without paying penalties.
But it does contribute to making SS taxable also.