Tax withheld from a SEPP/72t dispersement
L1: Tax withheld from a SEPP/72t dispersement
if the exact calculation of funds to be dispersed based on age, amount, fed mid-term date and calculation type equals $2000/month (e.g.) and I have Vanguard withhold 10% for federal taxes, does this bust my SEPP/72t because the NET amount that i will receive will be less than $2000?
Seems like a dumb question to me but I thought I’d ask. So many gotchas here.
2019-03-18 21:26, By: Early Riser, IP: [184.108.40.206]
L2: Tax withheld from a SEPP/72t dispersement
There is no such thing as a dumb question, only dumb answers.
Your question is a common concern, and especially with SEPP 72-T plans, so you don’t inadvertently bust the plan.
Taxpayers have the option of withdrawing the $ 2,000/month, and filing estimated taxes, or preferably having the 10% (or other amount) withheld and forwarded to the IRS, and sending you the $ 1,800 (or other) difference. The total of the payments to you and the withheld taxes must equal $ 24,000 in your example.
2019-03-18 21:38, By: dlzallestaxes, IP: [220.127.116.11]