In progress

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Specify a withholding percent on tax-deferred withdrawals

When we withdraw from our Individual Vanguard 401k, Vanguard insists on withholding 20% of the withdrawal amount for Federal taxes (it does not withhold on state taxes). So if we withdraw $10,000, they send us $8,000 and withhold $2,000. I would like to be able to model this in our 401k withdrawals. (Our SEP-IRA with another custodian does not do any withholding.)

9 votes

Tagged as Suggestion

Suggested 14 December 2023 by user QuinGold

Moved into In progress 22 November

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  • 14 December 2023 QuinGold suggested this task

  • 14 December 2023 Kyle Nolan approved this task

  • 16 February Kyle Nolan moved this task into Planned

  • avatar
    John Duhart

    I’m in the same boat as QuinGold. I suspect that this feature does not have many votes because most people currently using this tool are on the FI journey. However the need to model does not stop once you reach FIRE, and since I hope everyone is successful on their journey, you will need this feature one day.

    31 August
  • avatar
    QuinGold

    As it happens, Vanguard recently notified all customers with Individual 401k accounts that they were transferring the accounts to another administrator. So we rolled over our 401k account to Vanguard IRA and Roth IRA accounts (keeping the same allocations). Now we can withdraw funds with NO withholding! This is a good option for anyone who is retiring and not accumulating any more.

    31 August
  • avatar
    tiger1972

    Yeah please make this happen :)

    11 November

  • 22 November Kyle Nolan moved this task into In progress

  • avatar
    shmuel ungerfeld

    please… please make it happen :)

    02 December