I’ve been taking RMD’s for many years but just now thought of this.
When I have my 2020 YTD numbers, I’ll take RMD’s and withhold X%.
Meanwhile, I’m going to pull X$ from a brokerage account.
Can I have VG withhold Y% to be added to my RMD withholding?
To be clear, I’m not trying to reduce my IRA RMD. I’ll take the right amount, but can I reduce the RMD withholding a bit?
Can I add the two withholdings together? Seems like I can. Can I?
I can’t imagine why not. You don’t have to withhold at all from RMD’s. You can also make charitable contributions directly from your RMD which will not show as your taxable income.
1 Like
You mean withhold some additional amount from the RMD’s to cover taxes you might pay on the gains from the brokerage account? Absolutely.
1 Like
Yes you can have your total tax bill withheld from any distribution from your IRA.
Note the maxium Vanguard will with hold from an IRA distribution is 99%.
I have no withholding from my pension then in late November I estimate my income tax bill and take an IRA distribution and have 99% of that distribution withheld for income tax.
1 Like