Withholding

[Guest pm01]

A 79 year old Sole Proprietor is taking a distribution from a plan in the form of real estate. It is my understanding that 20% withholding is required on the value of the real estate less the amount of the RMD for the year.

Does the withholding need to come from the plan, or can he use personal funds outside the plan to pay the withholding? If the withholding payment comes from the plan, this will require a larger total taxable distribution, which we would like to avoid.

[WDIK]

http://benefitslink.com/boards/index.php?showtopic=38367

[Guest pm01]

I thought this question sounded familiar. Thank you for not ridiculing my poor search abilities.

[WDIK]

Thank you for not ridiculing my username, avatar, skateboarding prowess or sense of humor.