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Retirement tax questions
@Philly1228 wrote:
I was afraid of that.
I suppose I will claim the $5200 as total contributed and eat the cost of the tax and penalty of the remainder to meet my requirements (around $25k total). Vanguard lets me put in a withholding, so I can withhold around 30% (penalty + rough income tax estimate) so I don't get hit with late payment charges come tax time.
Thank you for your help.
Yes, you should have some withholding. You can ignore the first $5200, and then plan on 20%-30% on the rest, depending on your overall income. There are also some exceptions to the 10% penalty, depending on what kind of hardship you are facing. The list is here.
‎January 14, 2025
3:35 PM