Avoid These RMD Mistakes and Reduce Your Overall Taxes with THIS!

[@TheFedCorner]

How much do you need to retire? Find out: thefedcorner.com/am-i-ready-to-retire%3F

[@Promqueen23]

Thank you! Good info that I wish I understood before pulling out a sizeable sum post retirement for downpayment. When I got the additional tax bill (they hold back 20%), I flipped out.

[@TheFedCorner]

Glad you found it helpful, and I'm sorry that you had to learn by surprise. You're not alone, many feds don't know about that withholding feature! -TG

[@gsm6120]

Does the withholding amount will count towards the rmd satisfaction for the year? I guess im trying to say my rmd is 19k and i took out 20k and told them to withheld 2k. I will receive check for18k. In this scenario, did i satisfy my rmd for the year?

[@TheFedCorner]

In most cases any dollars distributed from a retirement account counts towards its RMD. The required distribution is the amount that must come out. Your withholding for taxes is a separate matter.

[@gsm6120]

@@TheFedCorner thank you so much for your reply! Is it mandatory for brokerage to withhold taxes for rmd?

[@TheFedCorner]

If you mean IRAs, technically no. You can control how much tax gets withheld or not withheld, except for in states that have mandatory minimum withholding. @@gsm6120

[@mikibihon8826]

It is now 73. (2024).

[@TheFedCorner]

Indeed, or 75 depending on age. This changed recently.