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Do I have to withhold federal taxes from RMD or can I wait till end of year? Are there penalties associated with 'under withholding'?

Forum|Forum|7 years ago
June 6, 2019
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Are there penalties for not withholding fed tax on IRA distribution?

Best answer by dmertz

You could be subject to an underpayment penalty if you have insufficient taxes withheld and do not make timely estimated tax payments. For details, see IRS Tax Topic 306: https://www.irs.gov/taxtopics/tc306.html

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dmertzAnswer

Employee

You could be subject to an underpayment penalty if you have insufficient taxes withheld and do not make timely estimated tax payments. For details, see IRS Tax Topic 306: https://www.irs.gov/taxtopics/tc306.html

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steve07758Author

Seems there is an exception IF your distributions are "uneven" (ie. taken in a lump sum at year's end). IRS form 2210 covers it. Am I understanding that correctly?