2019 RMD mistake in state withholding tax
Financial institution took 3 times the state withholding tax I requested from RMD. I called today and they confirmed their mistake (“computer glitch”). Their “resolution team” will put in a correction. Since tomorrow is the last day to do so, they could not guarantee that the correction would go through. I was told not to worry because I’ll get the money back when I do my taxes. Any thoughts?
Permalink Submitted by Alan - IRA critic on Mon, 2019-12-30 20:01
Unless you are really short of funds, it may be better to simply file as early as you can to get your tax refund. This is the type of error that is prone to being messed up even worse after their resolution team gets through with it, since they will have to square up the 1099R, send you the cash, and maybe have to deal with the state tax Dept if they actually forwarded the excess withholding.
Permalink Submitted by barbara rosen on Mon, 2019-12-30 21:55
Thanks, Alan. I took your suggestion as I too subscribe to Murphy’s Law – “Anything that could go wrong, will go wrong”. I cancelled my request for return of excess state withholding. I’ll file my 2020 tax return as early as possble. Happy New Year!