How to change withholding on IRA RMD at Vanguard

[Dregob]

I know I can call them tomorrow AM but it is driving me crazy that I can not figure out how to find and change fed and state tax I want withheld on a RMD from an inherited IRA.
First year retired and first year doing estimated taxes. No big deal right now, but I just thought I'd ask since Vanguard phone service gets a .

[Dregob]

I found it clicking through but not sure I can give advice how to get there!

[Silk McCue]

I found it clicking thought but not sure I can give advice how to get there!

Glad you came along to help yourself! Lol

https://personal1.vanguard.com/ffa-ffa-tax-ui/w4r

Cheers

[prd1982]

For the brokerage platform , when moving money, you are asked for the % to withhold for federal after you enter the source and target. It shows 10% but you can change it. I think the way state is handled is unique to the state. For CT, search VG for withholding, and look for ct-4p reference. You have to fill out online before you take your withdrawal. I believe that for many states, VG will not withholding state taxes.

[Silk McCue]

For the brokerage platform , when moving money, you are asked for the % to withhold for federal after you enter the source and target. It shows 10% but you can change it. I think the way state is handled is unique to the state. For CT, search VG for withholding, and look for ct-4p reference. You have to fill out online before you take your withdrawal. I believe that for many states, VG will not withholding state taxes.

Just withdrew some IRA funds recently but it wasn’t as simple as just changing the tax rate on the screen. I had to electronically complete and sign a Form W-4R before it was applied. Not a difficult process but not a simple override on an input field.

https://personal1.vanguard.com/ffa-ffa-tax-ui/w4r

Cheers

[prd1982]

For the brokerage platform , when moving money, you are asked for the % to withhold for federal after you enter the source and target. It shows 10% but you can change it. I think the way state is handled is unique to the state. For CT, search VG for withholding, and look for ct-4p reference. You have to fill out online before you take your withdrawal. I believe that for many states, VG will not withholding state taxes.

Just withdrew some IRA funds recently but it wasn’t as simple as just changing the tax rate on the screen. I had to electronically complete and sign a Form W-4R before it was applied. Not a difficult process but not a simple override on an input field.

https://personal1.vanguard.com/ffa-ffa-tax-ui/w4r

Cheers

Thanks. I had just walked thru an IRA withdrawal and got to the screen that showed 10% along with a change link. I didn’t proceed. I thought last year I just changed the %, so either I forgot (entirely possible) or they have changed.

Edit: changed button to link.

[Silk McCue]

Thanks. I had just walked thru an IRA withdrawal and got to the screen that showed 10% along with a change link. I didn’t proceed. I thought last year I just changed the %, so either I forgot (entirely possible) or they have changed.

I’m not certain either but I think they changed since the last time I did so.

Cheers

[L82GAME]

I just attempted to update RMD scheduling and withholding information for my in-laws (my wife has VG PoA on file for their accounts, and I manage the particulars on her behalf as her delegate under her PoA). Lo and behold, VG's new interface is exceptionally frustrating for anyone who has a VG PoA account.

• 1. The new RMD interface defaults to my wife instead of allowing for a selection among the PoA accounts

• 2. However, there is the option in the sidebar of the interface to use the old interface. Fantastic!

• 3. When selecting 0% withholdings for my mother in-law's RMD, and instead attributing all withholding to my father-in-law's RMD (he has a much larger IRA account balance), the Form W-4R that is now required to change the federal withholding % defaults to my wife's account/SS info.

Now we'll have to call VG, walk through their iterative questions as though we're the idiots, and then wait for them to address this design flaw.

If anyone has insights as to how I may otherwise proceed, please let me know. Crazy!

[L82GAME]

I just attempted to update RMD scheduling and withholding information for my in-laws (my wife has VG PoA on file for their accounts, and I manage the particulars on her behalf as her delegate under her PoA). Lo and behold, VG's new interface is exceptionally frustrating for anyone who has a VG PoA account.

• 1. The new RMD interface defaults to my wife instead of allowing for a selection among the PoA accounts

• 2. However, there is the option in the sidebar of the interface to use the old interface. Fantastic!

• 3. When selecting 0% withholdings for my mother in-law's RMD, and instead attributing all withholding to my father-in-law's RMD (he has a much larger IRA account balance), the Form W-4R that is now required to change the federal withholding % defaults to my wife's account/SS info.

Now we'll have to call VG, walk through their iterative questions as though we're the idiots, and then wait for them to address this design flaw.

If anyone has insights as to how I may otherwise proceed, please let me know. Crazy!

I posted a complaint on Vanguard's Facebook (FB) page. My post was briefly visible on their FB page, then VG took the post down and reached out to me privately. VG has since reverted to its legacy interface. I can now make adjustments to RMD-related withholdings for my in-laws, and the W-4R interface issue appears to be resolved.

[capran]

For the brokerage platform , when moving money, you are asked for the % to withhold for federal after you enter the source and target. It shows 10% but you can change it. I think the way state is handled is unique to the state. For CT, search VG for withholding, and look for ct-4p reference. You have to fill out online before you take your withdrawal. I believe that for many states, VG will not withholding state taxes.

Is that new? Or is it just related to an RMD? Or is it related to their optional RMD automatic program? For the last several years I have been making significant tIRA to Roth conversions and was told to do this from the brokerage platform you must go though them on the phone if you want any withholding done. I would prefer to be able to do it all online, and when RMD's are required, select a withholding amount with a majority to taxes so that the converted amount later would all go to conversion (since the RMD can't be converted to Roth, but can be used to pay withheld tax.