As we enter into another RMD calculation season, folks will need to tote up their 2017 year-end IRA balances to calculate the 2018 RMD amounts. Some folks might be in for a shock. For folks with IRAs in equities (in whole or in part), the run-up in the market could cause a major re-calculation.
First step: You'll need to add up the 2017 year-end balances for all your IRAs. This should not be too difficult.
Second step: You'll need to multiply the result in the first step by the multiplier. For example, a person in year two of the RMD multiplies step one times 3.77%.
Third step: You need to withhold (or pay estimated taxes) in the appropriate amount. With the uncertainty over the new tax bill and withholding tables, good luck on that.
My solution: I'm taking a RMD next week from an IRA Money Market Account. I plan to withhold 35% Federal and 15% State.