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I gather you mean on early withdrawals. Yes..to the degree any amount withheld is excess or more than the tax actually needed it will be refunded when you file the return. Of course, you will also have a 10% penalty on the withdrawal, so keeping it all under the 20% at least by much is almost impossible. You cannnot get a lower withholding rate though....but again, sounds like your gonna need almost all, and maybe more than it anyway. ======================
There seems to be a misconception that there is withholding required from IRA distributions. This is not the case. When you request an IRA distribution, your IRA custodian will ask you to fill out a form where you elect how much to have withheld. You can select 0% if you like. There is no mandatory federal withholding. If you fail to select a number, the default withholding rate for an IRA is 10%.
The 20% figure is for distributions from employer plans such as a 401k. Withholding from such plans is mandatory. The rules for IRAs are different. At the end of the year, your IRA custodian will send you a Form 1099-R. Form 1099-R is very much like a Form W-2. It will show the amount you took out of your IRA and the amount of tax withheld. You treat this just like a W-2, except that you put the income on line 16 instead of line 7 of your 1040. You claim credit for the amount withheld on the same line you would claim credit for withholding on a W-2. Remember that the amount withheld is not the actual amount of taxes you owe. Also keep in mind that a large distribution from your IRA could push you into a higher tax bracket.
What else can I help you with?
How long has the social security withholding rate been 6.2 percent?
1990
What is the income tax withholding for the state of Georgia?
To determine the amount of tax withhold, employers use tax tables or the percentage method. With the percentage method, the withholding tax rate ranges from 2 up to 6 percent. If taxable income is under $8,000 the withholding rate is 2 percent. For taxable income $8,000 - $10,000 the rate is 3 percent. For $10,001 - $12,000 the rate is 4 percent. For $12,001 - $15,000 the rate is 5 percent. For over $15,000 the rate is 6 percent. For more information, go to Georgia Department of Revenue website, etax.dor.ga.gov. Select Forms and Publications to view State of Georgia Employers Tax Guide.
What is the FICA withholding rate for 2011?
what is the FICA rate for 2011
What is the 2009 Medicare withholding rate?
1.45%
What is the literacy rate of the Persians?
Less than 1 percent. There were no schools.
Which country has a less than 1 percent population growth rate?
Probably China - since they limit each family to having one child.
What is the birth rate of the Philippines?
3 percent more or less Birth rate:25.31 births / 1,000 population (2005 est.)
Describe the effect that The Fed raises the discount rate from 5 percent to 10 percentwill have on the money supply?
If the Fed raises the discount rate from five percent to ten percent, there would be less money supply. This is because it is a contractionary monetary policy.
What does 13 percent represent?
More than an eighth less than a seventh. A great interest rate if you are lending, a horrible interest rate if you are borrowing.
How do you find out what you owe in backup withholding?
Backup Withholding (BWH-B) Rate/Effective Dates Rate/Percentage is 28%, effective for all subject payments after December 31, 2002 until December 31, 2010. Rate TBD, thereafter. Click on the below related link
What is the basic rate for Maryland taxes?
The basic rate for Maryland taxes is two percent of the taxable income. This is the rate for when the amount of taxable income is less than one thousand dollars.
What is 6.7 percent as a rate?
6.7 percent as a rate = 6.7%
