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WCI #306: Using Retirement Accounts

White Coat Investor Podcast

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Withholding for Taxes - Is That a Reasonable Strategy?

Withholding for taxes is a nightmare given our multiple different streams of income, which vary year to year. When you have significant income that is not from an employer, you're responsible for withholding those taxes yourself. If you withhold at least 110% of what you owed last year, or if you sent it in as quarterly estimated payments, not withhold it, you were in the safe harbor. You can pay within $1,000 of the amount of tax you owe.

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