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Self employed
When I fill out the online form on this transfer to Roth IRA, I see three options:
1) default federal tax (20%)
2) fixed percent (must be above 20%)
3)do not withhold taxes
So, when I asked my pension compay, they say if I choose 1), the ACTUAL l amount to transfer to my Roth IRA is $20,000 ( $5,000 withheld).
This is where I got confused. According to your explanation, my pension company withholds $5,000 to pay for federal taxes later, but the actual amount to transfer to Roth IRA is still $25,000, not $20,000 now?
‎August 26, 2020
8:29 PM