An RMD is a distribution from a retirement account. It is reported to you on form 1099-R
If you want your payer to withhold federal tax, provide them with Form W-4P
This link has the form and instructions. Do not send it to IRS, only the payer. http://www.irs.gov/pub/irs-pdf/fw4p.pdf
Normally I would, but the account was closed out and I now have to
correct my self.
I don't understand. What do you mean "correct my self"?
I need to pay additional funds to the FED and State.?
If you already took your distributions and you are referring to 2011, then you report the distributions on your 1040 tax return. If you have a balance due, you write a check to the IRS.
2011 was already paid. This is for 2012 ?
Do you mean you took your distribution for 2012 already and there was not enough tax deducted?
Yes, It was in the close out.
Approximately how much did you distribute?
They sent 10% to the Fed and 10 % of the Fed value to the state.
OK, that sounds a lot for the state, for sure. How much was the taxable amount you took out?
Here is the numbers:
Fed 3393.31 tax
I see. OK so a substantial amount. You have two choices really. You can make an estimated payment for 2012, or you can pay the tax with a penalty in a year. The penalty is about 5% of the tax shortage at most.
I would like to pay now.
The estimated tax payment to the IRS can be made by using this form and sending to the address listed on the instructions: http://www.irs.gov/pub/irs-pdf/f1040es.pdf
As long as the payment is made by 4/17, you should not incur any penalties next year.
California's Form is here https://www.ftb.ca.gov/forms/2012/12_540es.pdf
Does that answer your question?
Thank you, XXXXX XXXXX what I need to do.
OK. If you are satisfied, kindly press the Accept button to close out this question. Thanks and have a good evening.