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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29484
Experience:  Taxes, Immigration, Labor Relations
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I have a question regarding early pension/457 withdrawal.

Customer Question

I have a question regarding early pension/457 withdrawal. Does the 20% withholding satisfy the IRS for the balance of the tax year, or will I be required to make quarterly tax payments?
Submitted: 10 months ago.
Category: Tax
Expert:  Lev replied 10 months ago.

At the time of distribution - the administrator is required to withhold 20%.

Withholding is NOT your actual tax liability.

Expert:  Lev replied 10 months ago.

Your actual tax liability is based on TOTAL income, filing status, deductions, etc.

Withholding may be more or less than your actual tax liability.

On your tax return - withholding is credited toward total tax liability - and if overpaid - you will claim a refund.