Installment Payments- ERD and Withholding

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An employee terminates employment and chooses 15 year installment payments from a 401(k) plan. The employee can choose to receive an additional payment (or cash out the remaining balance) at any time.

1. Are these substantially equal periodic payments rendering them ineligible for rollover?

2. If so, are they periodic payments subject to wage withholding, or nonperiodic payments subject to 10% withholding?

I believe the answers are (1) yes and (2) nonperiodic, but I'm having trouble finding conclusive guidance with respect to (2), other than a 2000 private letter ruling which says that, because of the "on demand" feature of the installment method, these are "amounts not received as an annuity." Therefore wage withholding would not apply.

I researched this several years ago, and had concluded then, based on the section 72 regs, that installment payments for a fixed period were amounts received as an annuity, and payments of this type would be subject to wage withholding.

Anyone know of any official guidance?

Thanks.

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[FundeK]

Does anyone have any comments on this post from April?

Specifically the following:

(2) nonperiodic, but I'm having trouble finding conclusive guidance with respect to (2), other than a 2000 private letter ruling which says that, because of the "on demand" feature of the installment method, these are "amounts not received as an annuity." Therefore wage withholding would not apply.

Does anyone have any of these PLRs?