70-1/2 MRD & Withholding Taxes.

[flosfur]

For tax withholding purposes, are the 70-1/2 distributions considered periodic or no-periodic? Since they are required to be made every year, that should qualifies them as periodic?

Different tax withholding rules aplply to periodic vs. non-periodic pension payments.

[FundeK]

70 1/2 distributions are not eligible for rollover so they are not subject to the mandatory 20% withholding. They are subject to 10% withholding unless the participant elects something different. Periodic payments (substantially equal) are not eligible for rollover either.

[jevd]

Distributions from IRAs are considered non-periodic payments and are subject to the 10% withholding unless declined. Distributions from Qualified plans for RMDs would fall under the periodic rules and wage withholding tables defaulting to Married with three dependents if no election. Withholding may be declined as well.

As stated above mandatory withholding does not apply to RMDs. It may apply to amounts in excess of the RMD from a Qualified Plan.