asked

I work part-time in a public library and am required to participate in a pension plan, with 7% of my pay automatically deducted pre-federal tax. However, I do not make enough to pay federal tax and will not work long enough to receive a pension. When I leave, I will receive the withheld funds as a lump sum, but 20% will be withheld for federal tax, which seems unfair since I never would have paid federal tax on these funds. Is there any exception to this 20% rule under my circumstances?

February 26th, 2023

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