Oct 2012 – The SmallBiz Builder Newsletter

Are Retirement Plan Distributions Subject To Withholding?

Distributions from an employer-sponsored retirement plan may be subject to withholding. In some cases, withholding is mandatory and in others the recipient can elect out. Eligible Rollover Distributions. In general, the payor of any designated distribution that is an eligible rollover distribution must withhold an amount equal to 20% of the distribution. The recipient may not elect out of the withholding requirement.

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