Changing tax withholdings after filing?

[becky20]

So we have been getting back between around 5K the last few years from our tax refunds. I was told that after our 341, we could increase our withholdings so we get more each check and then the creditors wouldn't get those large checks each year. Does that sound right? I'm planning to increase our withholdings after our 341 and have that extra money deposited right into a savings account for our "just in case" emergency fund. But if the trustees see that for tax years 2006 and 2007 we had over 5K in refunds and then 2008 comes and it's only 1 or 2K, what will they do?

Anyone know??

[itneverends]

So we have been getting back between around 5K the last few years from our tax refunds. I was told that after our 341, we could increase our withholdings so we get more each check and then the creditors wouldn't get those large checks each year. Does that sound right? I'm planning to increase our withholdings after our 341 and have that extra money deposited right into a savings account for our "just in case" emergency fund. But if the trustees see that for tax years 2006 and 2007 we had over 5K in refunds and then 2008 comes and it's only 1 or 2K, what will they do?

Anyone know??

Better check with your lawyer. I know some trustees state you are not allowed to change withholdings without getting it OK'ed. As with everything, it varies greatly.

[Flamingo]

When it comes to anything financial involving your Plan, don't take chances - ask your attorney.

[sahaley]

we did check with our atty on this very issue (yours could be different however) - we changed our withholdings to allow for more in the check and hopefully to break even come tax time.... we also are putting a small amount into a credit union account for emergencies - we cleared that with atty too just to be safe - the trustee actually recommended it too at our 341

[becky20]

Thanks - my attorney actually mentioned it to me but I still thought I'd get others opinions as well. I'm really looking forward to being able to do this (a savings account, what a concept!). It just seemed questionable enough that I thought I'd double check. And of course I'll ask the attorney again before I change the withholdings.

Anyone else in Arizona that could give me their experience for our state (Maricopa County)?