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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?
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You can withhold as much as you want.
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.
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.
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.
@SteamTrain Yes, That's probably what I'm thinking of and have seen. About State withholding.
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