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Tax Withholding

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Last Updated On
ByRoger

L1: Tax WithholdingI have already started my SEPP in 2003 andI want to have some taxes withheld this year. The fellow at Fidelity said this may be viewed by the IRS as a modification. Is this true?
Thanks, Roger2004-09-17 13:25, By: roger, IP: [66.57.14.119]

L2: Tax WithholdingYou aren’t changing the payment amount – the amount withheld will merely reduce the amount that you receive, not the amount distributed.2004-09-17 13:30, By: Gfw, IP: [172.16.1.73]

L2: Tax WithholdingI agree with Gordon. If you don’t change the GROSS amount of the distribution and only change the amount of tax withholding, this should not be a problem. I just changed a clients withholding from 28% to 10%, and the custodian (not Fidelity) didn’t blink. And my custodian has many years of experience with SEPP and other such activities.
Here’s a suggestion. If you are still getting the same bad info from the call-center people, ask for someone in their advanced marketing section or tax section. You will get someone with more knowledge and experience than the first person you talk with. And if all else fails, remember that you can always change custodians.
Good luck.
Jim2004-09-20 08:50, By: Jim, IP: [68.1.157.228]

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