Federal tax deducted from TSP RMD


When taking a required minimum distribution from an IRA, an entire year’s worth of Federal tax can be taken from a single distribution near the end of the year, and this satisfies the IRS (i.e. no estimated tax due during the course of the year.

Does this also apply to a single RMD from the Thrift Savings Plan taken in December?

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Asked on October 29, 2019 5:04 pm
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Yes. Any taxes that are withheld are viewed as being taken evenly across the entire year. The TSP is required to withhold 10% of a required minimum distribution. If you feel that amount will not be enough to satisfy your tax obligation, you can request that a larger amount be withheld.

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Posted by (Questions: 0, Answers: 81)
Answered on October 29, 2019 5:42 pm