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Originally Posted by Caymus
I have a question on withholding taxes from investment accounts. I assume you can have taxes withheld from 401K and regular IRA distributions. How about from regular brokerage accounts and mutual funds? If not, I assume you would account for that in estimated tax payments.
It also looks like taxes can also be withheld from SS payments.
This will be the first year that I will not be able to adjust my employer withholding to account for investments.
I would appreciate any advice (except see a tax/investment professional)  |
I'm curious about this as well. In particular, if a financial advisor/brokerage submits payments for taxes on capital gains, are those payments considered "withholding" or are they considered "estimated tax payments?" The two types of payments are treated differently when calculating underpayment penalties.
Fortunately for us, we can still make adjustments to payments that are considered to be withholding. Otherwise, we would need to pay close attention to our quarterly income and gains and pay estimated taxes.
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