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Posted

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, ERPA

Two wrongs don't make a right, but three rights make a left.

Posted

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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