How could this happen? (10% withheld only)

[ILLMAS]

I would under stand this happening if you are under 59 1/2 you withdraw early the broker might only withheld the 10%, but how about when you are in your 70's and they only withheld 10%, how does this happen?

 

MAS

[kcjenkins]

It is up to the client to ask for them to withhold more, if needed.  Or to make estimated payments, if they prefer.  

[mcb39]

This is a constant and ongoing battle with clients.  "Please, please, have more withheld!"  It is often the fault of the software.  I don't know how many times this week I have tried to explain the difference between the days when payroll was done by hand and we figured percentages; as opposed to these days of technology when the software doesn't recognize you as a human person with a "situation"!

[RitaB]

I would under stand this happening if you are under 59 1/2 you withdraw early the broker might only withheld the 10%, but how about when you are in your 70's and they only withheld 10%, how does this happen?

 

MAS

I don't understand why it's more logical to hold out more from the person with no penalty to pay, but yeah, it's up to the taxpayer to handle this stuff. If they need our help figuring it out, they should ask us. And if they see that somebody dropped the ball, they can always send in estimated tax payments, as KC said. They are without excuse. Taxpayer should have picked up the phone and asked you what to do if they didn't know. Sorry to seem harsh, but good grief, taxpayers, take some initiative.