Mandatory withholding

[Guest cosmo01]

What are the penalties if a plan administrator does not withhold the mandatory 20% on an eligible rollover distribution?

[Appleby]

At least the amount that the plan administrator failed to withhold…( Final Treas Reg 31.3405©-1)

If the plan administrator reasonably relied on adequate information provided by the Participant, the plan administrator may not be subject to any penalties or taxes