Are required minimum distributions rmds taxed in California?

Yes. Required Minimum Distributions (RMDs) are taxable in California if they come from a tax-deferred retirement account (such as a traditional IRA or pre-tax 401(k)). California generally taxes RMDs the same way the federal government does, as ordinary income.

How California Taxes RMDs

RMDs are taxable in California when taken from:

• Traditional IRAs
• Traditional 401(k), 403(b), and 457(b) plans
• SEP IRAs and SIMPLE IRAs
• Other pre-tax employer retirement plans

These RMDs are included in California gross income and taxed at California ordinary income tax rates.

California does not provide a retirement income exclusion or special RMD exemption.

RMDs That Are NOT Taxable in California

Roth IRA RMDs (Owner)

• Roth IRAs have no RMDs during the original owner’s lifetime
• Therefore, no California tax applies to owner Roth IRA RMDs (because none are required)

Qualified Roth Distributions

• Qualified Roth distributions remain tax-free for both federal and California purposes

Beneficiaries of inherited Roth IRAs may be subject to RMD rules, but qualified distributions are still not taxable.

California vs. Federal Treatment

California generally conforms to federal income inclusion rules for retirement distributions.

Withholding & Reporting

• California state tax withholding is optional, but available on retirement distributions
• RMDs are reported on:
  
  • Federal Form 1040
  • California Form 540
• The taxable amount usually flows directly from federal AGI to CA income

Summary 

Yes, RMDs are taxable in California if they come from pre-tax retirement accounts.

California taxes them as ordinary income, just like the federal government, with no special exclusion.

Related Questions

• Are there IRS limits on solo 401(k) contributions for 2026?
• How much is the California state tax on a 401 k withdrawal?
• Pension Related Deductions: Are you Eligible for this Tax Deduction?

Sources:

Internal Revenue Code §408(d)(1) - Taxation of IRA distributions

IRC §401(a)(9) - Required Minimum Distribution rules

California Revenue & Taxation Code §17085 - Conformity to federal income rules

FTB Publication 1005, Pension and Annuity Guidelines

FTB Form 540 Instructions - Retirement income inclusion