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.
You mean withhold some additional amount from the RMD’s to cover taxes you might pay on the gains from the brokerage account? Absolutely.
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.