Vanguard RMD taxes withheld for Ohio tax

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runner9
Posts: 2031
Joined: Tue Aug 02, 2011 8:49 pm
Location: Ohio

Vanguard RMD taxes withheld for Ohio tax

Post by runner9 » Sun Feb 19, 2017 4:52 pm

I'm helping my mom plan her RMD withdrawals for this year, the year she turns 70.5.

I'm able to estimate her tax due using prior returns and know that Vanguard will allow her to have them withhold federal taxes at any percentage over 10%

From a form linked from another thread it appears they offer withholding taxes for some states, but not Ohio.

What is she supposed to do? Increase withholdings of pension to at least pay the same amount up front as last year? Send in an estimated payment? Something else?

Thanks!

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bertilak
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Location: East of the Pecos, West of the Mississippi

Re: Vanguard RMD taxes withheld for Ohio tax

Post by bertilak » Sun Feb 19, 2017 5:38 pm

runner9 wrote:I'm helping my mom plan her RMD withdrawals for this year, the year she turns 70.5.

I'm able to estimate her tax due using prior returns and know that Vanguard will allow her to have them withhold federal taxes at any percentage over 10%

From a form linked from another thread it appears they offer withholding taxes for some states, but not Ohio.

What is she supposed to do? Increase withholdings of pension to at least pay the same amount up front as last year? Send in an estimated payment? Something else?

Thanks!
I would increase the withholding of Ohio tax on some OTHER investment that allows this, one she is probably already withholding Ohio tax from.

Or you could call VG and ask if your info is correct, or if it can be done.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker, the Cowboy Poet

gerntz
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Joined: Fri May 06, 2011 3:37 pm

Re: Vanguard RMD taxes withheld for Ohio tax

Post by gerntz » Sun Feb 19, 2017 5:55 pm

Take the withdrawal & write a check to OH from it.

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