Interpleader and Withholding

[Guest HCD]

We have a case where the beneficiary was contested through an interpleader action. Our question revolves around the withholding rules on the plan distribution. If the funds are paid into the Court and then paid to the beneficiary and the attorney (us), at what point, if any, do the withholding rules apply? Is it viewed as a plan distribution when the money is paid to the court? Or when the proceeds are paid from the Court to the bene? What about if the bene had intended on rolling over?

I have seen one question on this on the board, but not much response. Does anyone have any good info. We have tried to research it but are coming up with dead ends.

Thanks