Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 15
posted Jun 4, 2024 10:50:54 AM

401K RMD max withholding?

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?  

0 5 3698
5 Replies
Level 15
Jun 4, 2024 12:00:10 PM

You can withhold as much as you want. 

Level 15
Jun 4, 2024 12:18:40 PM

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.  

Level 15
Jun 4, 2024 12:36:59 PM

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.

Level 15
Jun 4, 2024 2:08:26 PM

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.

Level 15
Jun 4, 2024 2:13:31 PM

@SteamTrain   Yes,  That's probably what I'm thinking of and have seen.  About State withholding.