I am a retired teacher. Income comes from investments (divds/interest),
SS, pension, and IRAs (RMDs).
For my pension, I always claim 9 dependents on my W-4P thus yielding $0 withholding, plus I declare a flat additional amount thus giving me a reasonable/desired withholding amount. Today we got our retirees
newsletter. Guess the 4P is changing. No more fixed amount add-ons.

Anyone who currently has a flat dollar amount
withheld will automatically be calculated to have
a standard withholding based on the marital
status option of single or married, filing separately.
All existing withholdings will be automatically
recalculated using the IRS’ new requirements
effective Jan. 1.

Can I do the following: let's say they withhold $300 and I want $700
withheld. Can I just instruct one of my IRA funds where I take an RMD to withhold $400 additionally (are they allowed to do that?). If not, then
can I similarly adjust SS? If not, then am I stuck with making quarterly payments?

Mel

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On Sat, 17 Dec 2022 11:21:44 EST, MZB wrote:

Can I do the following: let's say they withhold $300 and I want $700 withheld. Can I just instruct one of my IRA funds where I take an RMD to withhold $400 additionally (are they allowed to do that?). If not, then
can I similarly adjust SS? If not, then am I stuck with making quarterly payments?

For withholding from Social Security benefits, you file form W-4P
with your local Social Security office. Your only options on that
form are 7%, 10%, 12%, or 22%; there's no option for a fixed amount
in addition or instead of those percentages. However, you can change
your percentage during the year.

<https://www.irs.gov/pub/irs-pdf/fw4v.pdf>

For withholding from an IRA distribution, I _believe_ they take a
fixed 10% unless you opt out or choose a different percentage.
Fidelity will withhold 1% to 100%, at your direction. <https://institutional.fidelity.com/app/proxy/content? literatureURL=/704656.PDF>
Other companies may be less flexible.

Don't forget you may also need withholding for state income taxes.
Vanguard's rules:
<https://personal.vanguard.com/pdf/s156.pdf?2210105562>

You can always make estimated tax payments. Remember that making
estimated payments late will probably subject you to penalties.

One benefit of withholding: you don't need to have the full tax
withheld during the year. You avoid penalties if your tax owed (total
tax minus withholding) is under $1,000. A second benefit: by default, withholding is assumed to be evenly distributed through the year. In
other words, unlike estimated payments, if your total withholding is
enough then the timing of it within the year doesn't matter. So if
the end of the year is approaching and it looks like you'll be under-
withheld, you can increase withholding and avoid penalties.

With estimated tax payments, if your income is irregular during the
year you may not need to make _equal_ quarterly payments; see form
2210 instructions.
<https://www.irs.gov/forms-pubs/about-form-2210>

--
Stan Brown, Tehachapi, California, USA https://BrownMath.com/
Shikata ga nai...

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

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On 12/17/2022 12:44 PM, Stan Brown wrote:

On Sat, 17 Dec 2022 11:21:44 EST, MZB wrote:

Can I do the following: let's say they withhold $300 and I want $700
withheld. Can I just instruct one of my IRA funds where I take an RMD to
withhold $400 additionally (are they allowed to do that?). If not, then
can I similarly adjust SS? If not, then am I stuck with making quarterly
payments?

For withholding from Social Security benefits, you file form W-4P
with your local Social Security office. Your only options on that
form are 7%, 10%, 12%, or 22%; there's no option for a fixed amount
in addition or instead of those percentages. However, you can change
your percentage during the year.

<https://www.irs.gov/pub/irs-pdf/fw4v.pdf>

For withholding from an IRA distribution, I _believe_ they take a
fixed 10% unless you opt out or choose a different percentage.
Fidelity will withhold 1% to 100%, at your direction. <https://institutional.fidelity.com/app/proxy/content? literatureURL=/704656.PDF>
Other companies may be less flexible.
g out the newer
Don't forget you may also need withholding for state income taxes.
Vanguard's rules:
<https://personal.vanguard.com/pdf/s156.pdf?2210105562>

You can always make estimated tax payments. Remember that making
estimated payments late will probably subject you to penalties.

One benefit of withholding: you don't need to have the full tax
withheld during the year. You avoid penalties if your tax owed (total
tax minus withholding) is under $1,000. A second benefit: by default, withholding is assumed to be evenly distributed through the year. In
other words, unlike estimated payments, if your total withholding is
enough then the timing of it within the year doesn't matter. So if
the end of the year is approaching and it looks like you'll be under- withheld, you can increase withholding and avoid penalties.

With estimated tax payments, if your income is irregular during the
year you may not need to make _equal_ quarterly payments; see form
2210 instructions.
<https://www.irs.gov/forms-pubs/about-form-2210>

Stan:
Thanks for your detailed reply. I am trying to avoid filling out the
newer W-4P 2022 form. But maybe if I get 2 questions answered:
Form says:

If you (and/or your spouse) have any other pensions/annuities that pay
less annually than
this one, then enter the total annual taxable payments from all
lower-paying pensions/
annuities

So, is SS considered a pension. I assume not for this form since SS has
its own withholding election.
Same question for RMD. I take mine all from an Ameritrade IRA. Again,
can I assume that this (and a separate 403B fund) does not go on the
W-4P form?

Mel

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

--- SoupGate-Win32 v1.05
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