Amount to withhold for taxes??
L1: Amount to withhold for taxes??I will beconverting my VANGUARD 401k account toan IRA within the next 2 months. I’m also planningtostart a 72T in Jan./2011 with monthly withdrawls. Can I tell Vanguard to withhold “any amount”, eitherdollar amount orapercentagefor taxes (20% in my case)??2010-06-27 00:23, By: Rick in Ohio, IP: [18.104.22.168]
L2: Amount to withhold for taxes??There should be -0- taxes withheld on the TRUSTEE-TO-TRUSTEE transfer because it is not a taxable transaction.In 2011 you have to project your taxable income to determine the tax liability that you will have.HOWEVER, if you are already 55, or will become 55 during 2010 ( or 2011), and are or will be “separating from service” with that employer,then you see ask the 401-K administrator if they allow partial withdrawals. If so, then you may not even need to set up a SEPP 72-T.Further, if there is employer stock in your 401-K, then ask your HR dept for the “COST BASIS” of this NUA ( Net Unrealized Appreciated Employer Stock), and the current market value. If so, then research the FANTASTIC TAX SAVINGS from this special provision of the tax code. ( Search this website, or talk to a tax professional, or get JK Lasser YOUR INCOME TAX 2010 for an explanation.When were you born, how much is in your account, and how much do you need each year ?2010-06-27 02:58, By: dlzallestaxes, IP: [22.214.171.124]
L3: Amount to withhold for taxes??I’m talking aboutthe taxes on the 72t yearly (monthly) withdrawl!!!Born:1959amount: 500Kneeded: 24k per year2010-06-27 03:26, By: Rick in Ohio, IP: [126.96.36.199]
L4: Amount to withhold for taxes??Rick,Find out what Vanguard allows in the IRA. I am pretty sure you can give them a specific dollar amount or a percentage for the taxes taken out of each SEPP payment. Ken2010-06-27 03:31, By: Ken, IP: [188.8.131.52]