Withholding on nonqualified Roth distributions

[Guest mickiemurphy]

I have a Roth distribution that is obviously going to be nonqualified. This one happens to have a very small amount of earnings, but am I generally required to withhold 20% on a nonqualified distribution's investment income? My presumption is that we should since it is eligible for rollover to another Roth vehicle in order to continue to defer taxability.

[JanetM]

Does the under $200 apply? If distribution is less than $200 you don't have to withhold.

[Guest mickiemurphy]

I'm banking on the small amount exclusion for this one, but it's a large plan and I'm trying to give the controller guidelines for the future distributions. They just started Roth 1/1/07 so he's got 5 years of nonqualified distributions coming.....