How to enter MRD in Form 2210

Forum|Forum|1 year ago
January 9, 2025
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Dear All:

I am retired and taking Minimum Required Distribution starting a few years ago. It is a significant part of my income nowadays. I am taking it near the end of the year every year. My question is, when I using Form 2210 for my estimated tax, should I treat the MRD as the part of my AGI of the fourth period (Sept. - Dec.) or evenly distributed over the entire year. I mainly use it to pay my taxes. As I know, IRS treat it as withholding taxes and treat it as paying evenly over the entire year. The question is how do they treat if as my income.

Thanks in advance for your help!

Best answer by dmertz

When annualizing income on Schedule AI for Form 2210, retirement distributions are income for the tax quarter in which you actually received the distribution, in this case, Q4.

dmertzAnswer

Employee

When annualizing income on Schedule AI for Form 2210, retirement distributions are income for the tax quarter in which you actually received the distribution, in this case, Q4.

fuyunlingAuthor

@dmertz

Thank you very much! You have solved all of the problems!

Fuyun

fanfare

Employee

"As I know, IRS treat it as withholding taxes and treat it as paying evenly over the entire year. "

THis is true only for withholding, not for estimated tax payments,

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What is your 2024 tax ? do you have withholding taken in 2025?
If your total 2025 withholding alone is 100 % of that amount ( 110% if your 2024 AGI is over $150,000),

You don't need to make estimated tax payments. This is the prior year's tax rule.

If you got a 2024 refund this year and 2025 earnings are comparable then your 2025 withholding may already meet the prior year's tax rule

If you tell the custodian to withhold tax on IRA distribution, that can work also if you are retired.

@fuyunling