Estimated Taxes on a 401(a) W/D
If a retired plan participant requests a lump sum withdrawal from his 401(a), and requests that State taxes be withheld, in addition to the mandatory 20% Federal, is there still a requirement to file Estimated Tax returns? The withdrawal will be about 20% of AGI
Permalink Submitted by mk foss on Wed, 2009-04-15 23:41
There is never a requirement to do quarterly estimated payments if all of the tax is covered by withholding. There is not enough information to answer your question specifically. Most states follow the federal safe harbors of 110% of prior year and 90% of current year tax. You just have to project what will be owed.
Permalink Submitted by Al Fry on Thu, 2009-04-16 01:36
TKU, MK