State withholding on minimum distributions

[Guest terric]

Is it required to withhold state taxes from a minimum required distribution?

[stephen]

Since an MRD cannot be rolled over I expect you would not have mandatory withholding. However, the participant could elect withholding at the state or federal level.

[Guest terric]

My understanding is that a participant may elect in writing not to have federal taxes withheld. If they do not elect in writing not to have federal taxes withheld, then the plan is required to withhold 10%.

Does this hold true on a state level? Does it matter what state you are in?

[Bird]

Check this thread; the last message has a link to Cigna's summary of state tax WH.

http://benefitslink.com/boards/index.php?showtopic=13240

It matters whether there is 20% mandatory fed WH and it matters which state the recipient resides in.