@billyandwilla wrote:
457b company has kept 20% for taxes.Looking for hot to NOT get penalized
20% is the mandatory withholding. The actual tax when you file depends on your other income and the tax bracket you are in. If you are under age 59 1/2 then there is an additional 10% penalty.
For example, if for 2021 your taxable income will be $40,526 to $86,375 you will be in the 22% bracket and if under 59 1/2 then you should have at least 32% withheld to avoid more tax at filing time.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
