Is there a maximum amount a person can specify for tax withholding on an IRA distribution? For example, if a retired taxpayer (over-65) has
under-withheld during the year on IRA distribution and doesn't want to file quarterly or estimated taxes or pay an IRS penalty, can he withdraw a specific amount from an IRA savings account in December and specify 100% withholding for taxes? Assume it's the kind of savings account where money can be withdrawn at any time.
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On Wednesday, September 15, 2021 at 10:58:15 AM UTC-4, Rick wrote:
Is there a maximum amount a person can specify for tax withholding on an IRA
distribution? For example, if a retired taxpayer (over-65) has under-withheld during the year on IRA distribution and doesn't want to file quarterly or estimated taxes or pay an IRS penalty, can he withdraw a specific amount from an IRA savings account in December and specify 100% withholding for taxes? Assume it's the kind of savings account where money can be withdrawn at any time.
Legally, the most you can withhold for taxes is 100% of the distribution. It's possible that some custodians have a lower maximum.
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