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Is withholding taxes from your RMD right for you?
Are you a retiree making federal estimated tax payment each quarter? Estimated tax payments help many retirees manage their tax payments by paying quarterly throughout the year; thus, helping them avoid underpayment penalties and large tax bill due at tax time.
Here are other tax payment options that may work for you:
1. If you over the age of 70 ½ and need to take Required Minimum Distribution (RMD) payments from your IRA, you can have some or all of your federal and state tax withheld from it.
2. You can ask to have federal taxes withheld from your Social Security benefits.
3. You can ask to have state and federal taxes withheld from many pension and annuities, too.
Withholding from one of these or any combination of these retirement income sources, may help you to better manage your tax payments, while maximizing your cash flow, and still avoiding tax underpayment penalties.
Retirement income and needs vary; make an appointment with Michelle to discuss the best option for maximizing your retirement income.
Call 925-937-4829 or email email@example.com
Last Updated by Admin on 2019-05-15 09:40:12 PM