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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29558
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: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

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

Withholding is NOT your actual tax liability.

Expert:  Lev replied 1 year 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.