Maryland Mandatory State Tax Rate

[Vlad401k]

The Maryland State mandatory tax withholding has been 7.75% as long as I can remember. However, we recently were notified that the mandatory percentage is now higher for 401k withdrawals. Does anyone know what the new state withholding for Maryland is?

 

Thank you.

[Larry Starr]

2 hours ago, Vlad401k said:

The Maryland State mandatory tax withholding has been 7.75% as long as I can remember. However, we recently were notified that the mandatory percentage is now higher for 401k withdrawals. Does anyone know what the new state withholding for Maryland is?

 

Thank you.

Who notified you and DIDN'T include the new rates and where that comes from (if indeed it is true).  "A little birdie told me"??

[Vlad401k]

The brokerage company that we work with rejected a distribution request because the 7.75% MD withholding was lower than the new tax rate for Maryland. However, they were not able to tell us what the new tax rate is.

[XTitan]

Maryland still says 7.75% according to the link below.

https://www.marylandtaxes.gov/forms/Tax_Publications/Tax_Facts/Withholding_Tax_Facts/Withholding_Tax_Facts_2020.pdf

[Larry Starr]

3 hours ago, Vlad401k said:

The brokerage company that we work with rejected a distribution request because the 7.75% MD withholding was lower than the new tax rate for Maryland. However, they were not able to tell us what the new tax rate is.

Huh?  That's nonsensical (from the brokerage company).  How do they know it's not 7.75 if they don't know what it is? Does that make any sense to anyone. And yes, I could not find anything other than the 7.75% number for MD.  Ask them to document their reason for rejecting the distribution; they might even be interfering with ERISA rights by not doing as requested.

[Bill Presson]

No one wants to play "guess the right number"?

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