Qualified birth under SECURE - withholding question

A participant is requesting a $5,000 withdrawal related to the birth of a child under the SECURE Act - The plan allows for this type of withdrawal. The question is whether the participant can "gross-up" the withdrawal so as to net $5,000? I truly have no idea.

Thanks for any replies.

A plan should limit the plan’s qualified birth or adoption distribution to one participant for one birth or adoption to no more than $5,000.

For tax-reporting and tax-withholding purposes, a qualified birth or adoption distribution is treated as not an eligible rollover distribution.

Internal Revenue Code of 1986 (26 U.S.C.) § 72(t)(2)(H)(vi)(II).

But get the distributee’s withholding certificate.

Because a qualified birth or adoption distribution is treated as not an eligible rollover distribution for tax-reporting and tax-withholding purposes, could a distributee properly complete Form W-R to request zero withholding for Federal income tax?

https://www.irs.gov/pub/irs-prior/fw4r--2022.pdf

If the distributee’s address is in the USA, is there any reason by which a plan’s administrator or its payer would reject such a withholding election?

Thank you, Peter. I thought that was the case, but a representative from an Investment Company led the participant to believe that he could gross up. Moral of story: Don't believe everything you hear from a customer service rep......