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IRA withholding limit for e-file eligibility

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    IRA withholding limit for e-file eligibility

    Is there a maximum % amount of Federal tax withholding allowed on an IRA distribution and still have the return eligible for E-filing ?
    Ran into this situation a few years ago. As I recall the customer had 50%, or so, tax withheld to compensate for other income.
    My software wouldn't allow me to create an E-file - it said % of Federal w/h was more than allowed on the IRA dist. but didn't provide a % limit.
    Can't seem to find info on this.
    Thanks for replies.

    #2
    Don't think there is a federal restriction on amount of withholding from IRA, as I have a couple of clients that withhold about 75% from one. Have never had issue efiling any of them. I use ProSeries, and maybe your issue is your software

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