How are RMDs taxed? January 26, 2011 IRA Category 0 Comments The account owner is taxed at his or her income tax rate on the amount of the withdrawn RMD (required minimum distribution). However, to the extent the RMD is a return of basis or is a qualified distribution from a Roth IRA , it is tax free. Share the knowledge Posted in IRA CategoryTagged how are rmds taxed, ira, rmd, Required Minimum Distribution, rmd rules Post navigation Previous Previous post: Who calculates the amount of the RMD?Next Next post: What Types of 401(k) funds Can be Converted to a Roth Solo 401(k)? Leave a Reply Cancel replyYou must be logged in to post a comment.