RMD taxability

[Guest BigBish]

I was always under the assumption that since the RMD was a mandated form of distribution that federal taxes were required to be witheld. However, my provider is telling me that they can be deferred until the participant does his taxes. this doesn't make sense to me. Do federal taxes need to be witheld?

[Guest BXO]

They are not eligible for rollover, and the 20% mandatory withholding for eligible rollovers does not apply.

There are withholding rules for distributions ineligible for rollover, though. See IRC 3405b.

[Appleby]

The withholding is voluntary, i.e. the participant can elect to have zero withholding. However, if the participant elect to have withholding done, the withholding percentage must generally be at least 10%.