Death benefit payable to estate

[Belgarath]

I should know this, but I'm drawing a blank. Presumably 20% withholding doesn't apply, but does 10% withholding apply, absent an election by estate representative not to have any withholding?

P.S. - FWIW, my opinion is that the 10% withholding applies if the estate representative doesn't elect out of it.

[Lou S.]

I would agree with you.

[KateSmithPA]

Why is there no required withholding when distributing to an estate?

Thank you.

Kate Smith

[Bird]

Because it's not eligible for rollover.

[david rigby]

Based on the assumption that the estate does not have the right to elect a rollover, the 20% withholding rate is not relevant. So, the default withholding rate becomes 10%, but (I think) the estate has the right to elect zero withholding, using a W-4P, just like any other recipient of a QP benefit.

The estate probably will use the W-4P to communicate to the PA the correct TIN for the estate.

Just my limited understanding of the process. Perhaps others have more relevant experience.