change of withholding

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L1: change of withholdingCan the withholding percentages be changed after setting up a 72t distribution?2008-11-06 09:46, By: rm, IP: []
L2: change of withholdingDEFINITELY. The SEPP 72-T required annual distributions only apply to the GROSS amounts, not the net after taxes.2008-11-06 10:10, By: dlzallestaxes, IP: []

L2: change of withholdingHello rm:Yes, you can change your withholding percentage at any time. Your IRA custodian will usually send out a 1-page form letter concerning your right to do this. I get them each year, usually in mid to late November.I started with 10% withholding for a year and then switched to 15% so as to be closer to the amount owed for annual income taxes.As dlz says, it is the total amount of the distribution that can’t be changed. It is a good idea to check this after you change your withholding percentage. Make sure that the gross amount before and after the change is the same. Mistakes do happen, so be vigilant and catch them ASAP. Most custodians are pretty good about correcting problems of this kind.Ed2008-11-06 17:33, By: ed_b, IP: []