The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: RMD from an IRA Date:  4/2/2012  11:23 PM
Author:  vkg Number:  115808 of 127616

In Turbo Tax, when you enter the amount of distribution, it asks how much of it is RMD. But it doesn't change the bottom line whether it's all RMD or very little is RMD and most is over and above. So I was just wondering what the tax reason for indicating that is. Is it just to make sure AT LEAST the amount of RMD was taken? Or is there sometimes tax consequences for taking too much over the RMD?

There are significant tax penalties for taking less than the RMD. Since she is over 59 1/2, there is no penalty for taking distributions.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us