taxation on post retirement distributions

[joel]

Is there a mandatory federal withholding tax rate on post-retirement distributions made directly to the participant from a government 457(b) plan?

[ETA Consulting LLC]

Sure, it's a plan of "deferred compensation". There doesn't appears to be an exclusion for a governmental 457(b) plan; especially considering the distributions are eligible for rollover. Keep in mind a top-hat plan is paid out as W-2; so I would imagine the payroll withholding rules apply.

Good Luck

[Guest Slgstr]

Is there a mandatory federal withholding tax rate on post-retirement distributions made directly to the participant from a government 457(b) plan?

I administer a governmental 457(b) Plan. The withholding rules for a governmental 457(b) plan are the same as the rules for a 401(k).

For distributions eligible for a rollover, mandatory federal withholding is 20%.

For SEPPs ineligible for a rollover, there is no mandatory federal withholding and the default is married 3.

For other distributions ineligible for a rollover there is no mandatory federal withholding and the default is 10%.

[joel]

Is there a mandatory federal withholding tax rate on post-retirement distributions made directly to the participant from a government 457(b) plan?

I administer a governmental 457(b) Plan. The withholding rules for a governmental 457(b) plan are the same as the rules for a 401(k).

For distributions eligible for a rollover, mandatory federal withholding is 20%.

For SEPPs ineligible for a rollover, there is no mandatory federal withholding and the default is married 3.

For other distributions ineligible for a rollover there is no mandatory federal withholding and the default is 10%.

Thank you.

Is this a correct statement?: Retirement at age 60. Retiree, at age 60, instructs Plan Administrator to make distributions based on life expectancy. These distributions are not eligible for rollover treatment and, therefore, no mandatory withholding tax applies.

Is this a correct statement?: Withdrawal of $20,000 with $15,000 representing the RMD. $5000 is subject to 20 percent withholding because it is eligible for rollover treatment. $15,000 is not subject to mandatory withholding because it is a RMD which is not eligible for rollover treatment.

Thank you for your time and effort.

JOEL