Dist Amount Not Requireing Tax Withholding

I am horrible at searching the message boards.  Is there a number at which point taxes do not need to be withheld from a distributtion? 

Reason... Bob was paid out but the financial advisor didn't wait for everything to settle and now there is $150+/- still in the investment account.  I am happy to generate a 1099-R if it is acceptable to liquidate the account and send it all... no withholding. Is that ok?   Is there a magic amount when taxes are not required to be taken?  Just be sure it is reported via a 1099-R?

Thanks  

You are correct for a distribution from a defined contribution plan.  You don't need to withhold on distributions <$200.00. 

$200 is the magic number? no higher?  Just making sure

Thanks

This discussion assumes what is being distributed is cash.  The moment you start distributing something other than cash, in an ESOP it can be company stock for example, the rules for determining withholding are different.  But any form of in-kind property changes things. But I won't bore with details are most likely not needed.   

Yes... just a small amount in cash... a dividend or something.  SH 401(k) plan. 

I will put $200 on my bulletin board as the magic number.

You may also want to put on your bulletin board $10 as another magic number.

You will see on the IRS website https://www.irs.gov/instructions/i1099r that:

"Specific Instructions for Form 1099-R

File Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., for each person to whom you have made a designated distribution or are treated as having made a distribution of $10 or more from profit-sharing or retirement plans, any individual retirement arrangements (IRAs), annuities, pensions, insurance contracts, survivor income benefit plans, permanent and total disability payments under life insurance contracts, charitable gift annuities, etc."

This can come in handy when the plan posts dividends to a terminated participants' accounts who already received a distribution, or to accounts where a correction of late deposits results in a lot of participants getting very small deposits.

Consider also whether the distributee’s residence invokes a State’s, county’s, or city’s law (if the jurisdiction can apply its law to the payer) that calls for tax-information reporting and tax withholding, possibly with different thresholds.

Thanks!   I knew there was a reason I use a service like Penchecks.  If you are familiar, the base fee is $35.  For these small payouts I was just trying to save the terminated participant some $$.  

I appreciate everyon's responses!