Non spouse Beneficiary death benefit

[Nassau]

What is the Federal tax withholding percentage for a non-spouse beneficiary death benefit to an estate? I thought a non spouse beneficiary to an estate could elect a lower Federal Withholding percentage than 20% since it's death benefit to an estate distribution not a normal rollover?

Please note that the Non-Spousal Bene would like to take a distribution from the account that was transfered from the deceased's account. The non-spouse beneficiary is the executor of the estate.

The participant wants to know definitively if she can withold a smaller percentage of federal witholding at 10% versus 20%

[ETA Consulting LLC]

That used to be the case, but has since changed. It is 20% if they are eligible for a direct rollover to an inherited IRA. It shocked me too when the rule changed a couple of years ago.

Good Luck!

[Bird]

But an estate is not eligible to do a direct rollover, so there is no mandatory WH.

[ETA Consulting LLC]

But an estate is not eligible to do a direct rollover, so there is no mandatory WH.

True. I was assuming it was a natural person. I missed the fact that it was an estate in the original post.