MRD income tax paid on 1040-ES

[ej401]

Sold equities in traditional IRA to meet MRD requirement; no tax deduction was made from the sale proceeds.  Instead, paid taxes on 1040-ES.  Should be ok - no?
Thank you!

[mwcpa]

The sale of the security inside the IRA is not a taxable transaction.... 
The withdrawal from the IRA is.  Any tax due is based upon your tax rate.  If you made an estimated tax payment based on the withdrawn funds at your anticipated tax rate you should be okay provided you met the overall requirements for estimated tax payments.

[ej401]

Thank you MWCPA.  The sale was not 'inside' the IRA.  Securities moved in kind to a non-IRA investment account.  Value of securities moved was amount that met the MRD requirement.  This should be equivalent to an IRA withdrawal/MRD, no?  And the  estimated tax payment at anticipated tax rate should be ok?
Thanks again. 

[taxref]

"This should be equivalent to an IRA withdrawal/MRD, no? And the estimated tax payment at anticipated tax rate should be ok?"

Yes.  As long as the estimated tax payment was computed using your ordinary tax rate, rather than a capital gains rate, all should be all right.

[mwcpa]

Tax ref noted the correct thing.... The value of the assets moved is the income picked up.

the basis in the asset is the same as the amount of income reported, the clock resets.  The law treats it, to make it simple, as if you took cash from the IRA and purchased the shares immediately with the proceeds.

[ej401]

Thanks much taxref and mwcpa!

Yes - tax was based on ordinary income tax rate.