BG5150 Posted May 18, 2021 Posted May 18, 2021 I am getting conflicting advice on my end. Does the default 10% withholding apply to RMDs (unless they opt otherwise on W-4P)? An entry on Investopedia says this: Quote Nonperiodic distributions paid directly to an employee are subject to a 10% withholding tax, unless the beneficiary elects to have no taxes withheld. Nonperiodic distributions do not include individual retirement account (IRA), transfers or rollovers, systematic withdrawals, or required minimum distributions (RMDs) [1] However, that [1] points to the early withdrawal tax, not withholding. Does anyone have a specific site as to whether the default 10% withholding applies to RMDs? I always thought it did. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
ratherbereading Posted May 18, 2021 Posted May 18, 2021 We take 10% unless the participant waives the withholding or chooses another amount. From what I can find, that is the IRS rule. 4 out of 3 people struggle with math
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