Pension plan withholding
originally posted: 11/22/2006 reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email asktony@tonynovak.com.
Q: If federal withholding was erroneously withheld from a pension distribution that was rolled over, is there anyway to get that withholding back from the government now, as opposed to waiting until April of 2008 when a tax return is filed?.
A: No, that is why financial advisers emphasize the importance of having this type of transaction done right the first time with professional help. If the transaction had been handled by a professional who erred then you would have the right to legal recourse. But if you handled the paperwork yourself and sent it directly to the administrator then there is no recourse. Pension distribution paperwork is unnecessarily complicated with confusing with seemingly contradictory provisions. Unfortunately, processing delays and errant withholding problems like yours are common.
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