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Bill
Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3153
Experience:  EA, CEBS - 35 years experience providing financial advice
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I ELECTED A FULL PAYMENT OPTION ON MY ...

Resolved Question:

I ELECTED A FULL PAYMENT OPTION ON MY PENSION PLAN I WAS WONDERING WHAT IS THE PERCENTAGE THAT THE COMPANY CAN KEEP TO PAY FEDERAL TAXES? THE TOTAL THEY ESTIMATED IS $3,092.11 WHAT PERCENTAGE ARE THEY ALLOWED TO KEEP? IF I CHOOSE THE FULL PAYMENT ARE THEY ALLOWED TO OVERRIDE MY CHOICE AND SEND ME A PAYMENT INSTEAD?
Submitted: 9 years ago.
Category: Tax
Expert:  Bill replied 9 years ago.
If you elected to receive a lump sum distribution then the plan is required to withhold 20% of the taxable portion for federal income taxes. You can elect to have more than 20% withheld but not less.
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