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BJ-CiCi
July 26, 2023
Question

RMD Federal withholding tax percentage

  • July 26, 2023
  • 2 replies
  • 0 views

I'm 5 years retired and over 72. I found a formula to know what tax bracket I'm in. I found a formula to know what amount of RMD I need to take each year. I cannot find a formula that tells me what percentage needs to be withheld for federal taxes from the RMD that I take in a lump sum each October. The custodian (not past employer)  of my RMD funds doesn't offer advice on this and says it is up to me to decide. I chose 10%, but won't know until taxes are filed if it is too much or too little. Is there a formula for this? 

    2 replies

    carmen_t
    carmen_t
    July 26, 2023

    Great work in finding those formulas.  To further answer your question and provide you with a useful tool.  I would use a tax estimator to give you an estimate of your overall taxes and how your position will look.  This will help you to get a closer percentage for RMD withholdings.  

     

    Refund Estimator 

    C
    cocoanuts
    November 10, 2023

    Did the offered tax calculator help you at all??

    fanfare
    fanfare
    Employee
    November 12, 2023

    If you are in the 24% tax bracket you should withhold 24%,

    If your distribution pushes you into the next bracket, then you have to inclrease the percentage to

    cover the amount in the next bracket.

    @BJ-CiCi 

     

     

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