401K RMD max withholding?

Forum|Forum|2 years ago
June 4, 2024
5 replies
59 views

I need to take a 401K RMD this year. I would like the most to go to withholding. But I think there is a max w/h amount you can have for efiling? What is it, like 50%? And for state?

Not A Product Question

Bsch4477

Level 15

You can withhold as much as you want.

VolvoGirlAuthor

Level 15

I know. But I think you can't efile from TT if you have more than like 50% withholding. @dmertz ?

And how do I put a higher percentage on W4-P? Line 4(c) is for an extra dollar amount.

dmertz

Level 15

The tax code places no upper limit on the amount of a distribution to be withheld for taxes, but the 401(k) plan might have a limit lower than 100% such as 90% or 99%. I'm not aware of any limit that would prevent e-filing.

SteamTrain

Level 15

But for state withholding, many states have a limit for e-filing the state part.

My state (NC), I believe has a limit for box 14 (State withholding) to be less than about 25% of box 1...and if you go over that, you must file on paper because they want to see the actual (oops not a ~~W-2)~~ 1099-R to prove that much was withheld.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*