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May 1, 2020
Question

401k Withdrawal under Cares Act - Withhold tax now or pay when I file?

  • May 1, 2020
  • 1 reply
  • 0 views

Hi, I am filling out paperwork and there is a section for tax withholding. I was planning to claim the income over 3 years. Do I withhold 1/3 of the tax now or can I do no withholding and pay 1/3 when I file my taxes? It seems I should withhold 1/3 of the tax but looking for a definite answer. I don't want any penalties.

    1 reply

    fanfare
    Employee
    May 1, 2020

    if you don't want any penalties you should have the tax taken out.

    You may not be able to do no withholding on a 401k.

    and, make sure your custodian will allow you to withhold only 1/3 of 20%, they may not allow that either.