Increasing Federal tax withholding on a SEEP in progress?

L1: Increasing Federal tax withholding on a SEEP in progress?I am 3 years into a SEPP 72t plan that started June, 2010. I am now working again, unlike when the SEPP was started, and am wondering if there are any issues with requesting that my plan administrator increase the amount of Federal taxes taken on my withdrawals? I found that I owed income taxes this year between my salary and the added income from the SEPP. I can either up my withholding at work or have more taken out of the SEEP withdrawals. Does that create any issues with the SEEP, or am I better off leaving it alone, as I have done so far? Thanks for any replies…2013-05-04 16:10, By: stuw, IP: [75.76.109.116]
L2: Increasing Federal tax withholding on a SEEP in progress?I find that the fewer changes I ask brokers to make, the less chance of an account being messed up.
I would increase withholdings at work, or file quarterly estimates.2013-05-04 19:09, By: dlzallestaxes, IP: [98.111.190.136]

L3: Increasing Federal tax withholding on a SEEP in progress?Stu, I changed my fed withholding on a SEPP with no problem. They usually ask for a percent (of gross payout) for FED withholding,or some may allow you to add a flat amount to each current withholding. I would go with the flat if allowed, because you should be able to calculate how much more you need, and then give them that flat amount figure per payment as “additional Fed Tax withholding”. I would talk with them to get a comfort level about this.It is not a big deal, and I am sure many people have to do it at some point. Most important thing is to check the next few payments after they make the change, to be sure GROSS is the same amount, and the tax increase is being done as you requested. The SEPP is based on the GROSS, so if that does not change, you will be fine with the IRS, as far as plan is concerned, if you have the correct gross figure in the first place.2013-05-05 14:01, By: Ken, IP: [108.20.30.158]

L4: Increasing Federal tax withholding on a SEEP in progress?Since you seem to not need all of the funds from your SEPP disribution since you have gone back to work, you might consider the one-time switch to the “Minimum Distribution” method which will lower your total SEPP dstribution requirements. If you choose this option you have some important items to consider.
1. If you are taking monthly distributions which means you have taken 4 or 5 so far in 2013, you may have already taken too much this year to make the switch, unless you were able to process a “60-day rollover” to return enough money to the SEPP Plan IRA (I assume you are using an IRA for the SEPP Plan) so you don’t exceed the recalculated MDA amount for 2013. I hope this makes sense. If not ask questions.
2. If #1 doesn’t work, then you will have to wait until January, 2014 to make the change.
3. If #1 & #2 don’t sound good to you, then make the withholding changes as previously suggested.
If you do switch to the MD method you will solve your tax withholding problem and extend the life of your IRA.
Hope this helps.
Jim F2013-05-06 15:43, By: Jim F, IP: [70.184.1.22]

L5: Increasing Federal tax withholding on a SEEP in progress?Jim — GREAT ANSWER & SUGGESTED ALTERNATIVES.2013-05-06 17:16, By: dlzallestaxes, IP: [98.111.190.136]

L6: Increasing Federal tax withholding on a SEEP in progress?Thank you, DLZ.
Jim F2013-05-06 18:01, By: Jim F, IP: [70.184.1.22]