State Withholding Taxes on distributions.

[Guest MEWilson]

A participant has elected to have state taxes withheld from his distribution. What is the procedure for this? I know how to handle withholding of federal taxes but not state. 1) Where should the funds be deposited? 2) What form(s) should be used with the deposit? 3) How and when does the employer report state withholding taxes?

Any advice is greatly appreciated.

[QDROphile]

The best one can do with your question is: follow applicable state law and procedure for submitting and documenting the withholding. Perhaps if you identified a state, someone with that knowledge could respond with meaningful detail.

[Guest MEWilson]

The state is California.

[Lynn Campbell]

What I have done is: FAX Form DE 1P to California Employment Development Dept. to get a State Tax ID# for the Plan itself. You can get this form on the internet. I put my office address on the mailing address, so the new number and coupons come to my office. In a few weeks you should get notification of the new account number along with some coupons to make deposits. Quarterly returns are due on Form DE6 and there is an end of the year form (not sure the number). The deposits for my clients are all done manually, nothing electronic, so I hope this is of some help.

[Harwood]

"WITHHOLDING FROM PENSIONS, ANNUITIES, AND CERTAIN OTHER DEFERRED INCOME"

http://wwwedd.cahwnet.gov/taxrep/de231p.pdf

[imchipbrown]

I know it's wrong, but when I'm asked to do state withholding, a calculate it and add it to the Fed withholding.

[david rigby]

I know it's wrong, but ...

Why?

[Guest MEWilson]

Lynn, Thank you for the information. Harwood, Thanks for the website. I appreciate you help.