Just took my 2023 RMD

[disneysteve]

I know it's only October 18 but I needed to cross something off my to do list so I just took my 2023 RMD from my inherited traditional IRA. I did the inherited Roth RMD a few weeks back.

I had spoken to our CPA a few weeks ago to determine how much tax to withhold from the distribution. My RMD was $17,851.90. I withheld 54% for Federal and $1,000 for state. That will probably overshoot the mark but it depends on what happens with year end investment distributions. It is just easier and cleaner to use the RMD to settle taxes. The alternative would be to take the full RMD and then send in estimated tax payments, but that's extra steps that really serve no purpose.

That's one big thing off my list for the year.

[kork13]

This isn't RMDs due to your age, but rather the new-ish requirement to draw down inherited IRAs within 10 years of creation, correct?

Also, that requirement applies to Roth IRAs as well, doesn't it?

(I may be mistaken on exactly how that requirement works)

[disneysteve]

This isn't RMDs due to your age, but rather the new-ish requirement to draw down inherited IRAs within 10 years of creation, correct?

Also, that requirement applies to Roth IRAs as well, doesn't it?

(I may be mistaken on exactly how that requirement works)

Yes, it’s because these are inherited IRAs, not because of my age. The good thing is I qualify for one of the exceptions to the 10-year rule so I get to take my RMDs based on my own life expectancy.