LCARUSI Posted January 8, 1999 Share Posted January 8, 1999 What are the rules relating to withholding from distributions in such a Plan? 1)Is withholding mandatory? 2)Is it optional? 3)What is withheld? (e.g., it's generally 20% from a qualified plan) Link to comment Share on other sites More sharing options...
Guest bswift Posted January 8, 1999 Share Posted January 8, 1999 my understanding is that if the payment is made to a nonemployee there is no withholding obligation. Generally, however, distributions from a deferred compensation plan (even a 457 plan) are treated as wages for employees and withholding is required. Deferred compensation payments made to a nonemployee should not be subject to withholding. Link to comment Share on other sites More sharing options...
LCARUSI Posted January 11, 1999 Author Share Posted January 11, 1999 BSWIFT - I don't have a lot of experience in this area - I'm a qualified plan kind of guy . But I did review regulations under IRC secs 3401 - 3405. I conclude the distribution is subject to withholding under 3405 and the actual amount of withholding depends on whether the distribution is periodic or nonperiodic. Your thoughts on that? Link to comment Share on other sites More sharing options...
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