20% Federal Withholding

Is the federal tax withholding of 20% mandatory from a 401-k distribution less than $1,000?

Depends on how much less than $1000.  If you say "less than $200", then the answer would be no. Keep in mind that this is an annual amount "if the distribution for the entire year is less than $200 then there is no withholding".  This information can be found on your special tax notice.

Good Luck!

Is the distribution eligible for rollover?  If not, the withholding can be voluntary.

(e.g. an RMD or ADP excess)

Thanks.