I’m eligible for a pension when I retire and it appears I have a choice to have the pension plan withhold taxes or to pay taxes myself. I understand IRS rules require quarterly payments of estimated taxes owed and that I could incur a penalty for underpaying taxes during the year.
Still, it seems beneficial to receive 100% of my pension income untaxed and to make quarterly payments of estimated taxes rather than having taxes withheld because I then have access to more of my money sooner rather than having Uncle Sam hold it all year with no interest.
Is taking responsibility for paying my own taxes worth the risk and hassle?
Thanks!
Still, it seems beneficial to receive 100% of my pension income untaxed and to make quarterly payments of estimated taxes rather than having taxes withheld because I then have access to more of my money sooner rather than having Uncle Sam hold it all year with no interest.
Is taking responsibility for paying my own taxes worth the risk and hassle?
Thanks!