RMD Withholding

[401_noob]

Question for my fellow admins.

I know that 10% withholding is required on RMDs, but in practice do you withhold 10% unless the participant completes a W-4P, or do you process the RMD with no withholding unless the participant tells you otherwise?

[Larry Starr]

The W-4P is either used to make it zero or 10% withholding applies.  We provide the W-4P with our distribution forms, so it is just not a big deal.

[Bird]

We have an election on our forms, either "no withholding" or a % or amount, with a note that if nothing is elected it will be based on current tables.  Rarely or never had to look it up...I think 10% is only up to a certain amount but since I rarely or never had to look it up, don't know for sure. ?

[ESOP Guy]

Our firm is like Bird's we simply put on the RMD form.  If we don't get a form it is 10%.  It is easy to get right. 

[Appleby]

On 12/14/2018 at 3:05 PM, Bird said:

We have an election on our forms, either "no withholding" or a % or amount, with a note that if nothing is elected it will be based on current tables.  Rarely or never had to look it up...I think 10% is only up to a certain amount but since I rarely or never had to look it up, don't know for sure. ?

You are right. It's either zero, or at least 10% for non-periodic distributions.