On 2023-01-11 19:52, Milton Stern wrote:
> ****** New for 2023. IRS requires the brokerage to withhold taxes from IRA > Distributions. Last year you could specify 0% withholding. > ****** They don't make it so easy this year. It is sort of a double hit. > Even if you get it back as a tax refund, you can't put it back (Rollover) > into the IRA to earn tax free. Are you having this distribution delivered outside the US? If not, where did you get your information? In these matters it's usually best to go back to the source. First, see <https://www.irs.gov/individuals/international-taxpayers/pensions-and-annuity-withholding> Quoting from the second paragraph, "Generally, payees ... can choose not to have withholding apply to their pensions or annuities (however, refer to Mandatory Withholding on Payments to be Delivered Outside the United States below). The election remains in effect until the payee revokes it. The payer must notify the payee that this election is available." If your broker is telling you that withholding is mandatory, they are telling you an untruth--again, assuming you are a citizen or a resident alien, and the money is not being delivered to a foreign country. The first sentence of the fourth paragraph: "Payees of periodic payments can give payers a Form W-4P in order to make or change a withholding election, or elect not to have withholding apply, for their periodic payments." Form W-4P for 2023 is at <https://www.irs.gov/pub/irs-pdf/fw4p.pdf> A quote from the instructions on page 2: "Choosing not to have income tax withheld. You can choose not to have federal income tax withheld from your payments by writing “No Withholding” on Form W-4P in the space below Step 4(c). ... Generally, if you are a U.S. citizen or a resident alien, you are not permitted to elect not to have federal income tax withheld on payments to be delivered outside the United States and its territories." Stan Brown Tehachapi, CA, USA https://BrownMath.com _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
