State Tax Withholding on Distributions

[Guest HMoore]

Does anyone know where I can find a list of state tax withholding information for distributions broken down by state?

Right now I specifically need information for the state of California.

[david rigby]

Several prior discussions on this topic, most with links to other sources. Try the Search feature, perhaps using a keyword such as "withholding" or "state tax". Also, try the CA department of revenue website.

[No Name]

California has form DE4P. Line 1 has the option "I elect not to have taxes withheld from my pension or annuity payment".

I used to include the form in my distribution paperwork. Never saw the Line 1 box unchecked.

[Guest b2kates]

We consider California as a Mandatory withholding state that permits the participant to opt out of withholdings.

There are four type of withholding rules for states

1. Mandatory

2. Mandatory with permitted opt out

3. Voluntary withholding at direction of participant

4. No withholding.

[Bird]

http://benefitslink.com/boards/index.php?a...indpost&p=89114

I think this is what you want, or at least it's a starting point. If the link doesn't work do a search in this forum for "Cigna's 2004 information."

[mbozek]

Isnt there a question of whether the plan has minimum contacts in a state which would require compliance with state income tax withholding laws? If a Plan is administered in NY and assets are held in a NY trust why would the plan have to withhold state tax for a participant who lives in MA? The retiree would be required to file estimated taxes with MA.

[Guest Harry O]

Who has the withholding obligation - the trustee or the plan administrator? Under federal law, if I recall correctly, the plan administrator is the party required to withhold. I'm not sure what state laws provide. But if it is the plan administrator, the employer is frequently the plan administrator (for better or worse) and already does business in the state of the employee's residence.

[mbozek]

Two comments-1. Under ERISA the plan is a separate legal entity from the employer for benfit purposes. 2. State laws are preempted as they apply to an ERISA plan.