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Will I owe taxes on my RMD?

In general, distributions from a Traditional IRA are taxable in the year they are received. Distributions from a Roth IRA are generally tax-free if IRS requirements are met. Because tax treatment can vary based on your individual circumstances, consult a qualified tax professional regarding your specific situation. 

Tax reporting

If an RMD is required for the year, the IRA custodian reports the applicable fair market value and RMD-related information to the IRS on Form 5498. Any distributions taken from your IRA, including those used to satisfy an RMD, are reported on IRS Form 1099-R. STRATA makes Form 1099-R available by January 31 of the year following the distribution. 

Resources

 As a directed custodian, STRATA Trust Company does not provide tax, legal, or investment advice. Because RMD requirements can vary based on your individual circumstances, STRATA recommends consulting a qualified tax professional for guidance specific to your situation. For more information on RMDs, visit IRS.gov.