Required Minimum Distribution

[Guest PRafferty]

This may be a stupid question, but does the mandatory 20%withholding apply to a required minimum distribution due to attaining age 70 1/2? Thanks for any help!

[pmacduff]

The mandatory 20% withholding applies to "eligible rollover distributions" only, therefore would not apply to an age 70 1/2 minimum required distribution.

[mbozek]

Iras are subject to voluntary 10% withholding and quarterly estimated tax payments. Failure to make minimum payments will result in penalty at AFR rate when tax retrun is filed.