Stash026 Posted October 26, 2018 Share Posted October 26, 2018 My understanding always was that Plans weren't required to withhold 20% on distributions under $200. However I pulled up the 2018 Publication 15-A and in Chapter 8 it's not listed as an exception for the 20% withholding. All that it says is: Exceptions. Distributions that are (a) required minimum distributions, (b) one of a specified series of equal payments, or (c) qualifying “hardship” distributions aren't “eligible rollover distributions” and aren't subject to the mandatory 20% federal income tax withholding. Does that mean that we should withhold the 20%, even on a "small" distribution or is it listed somewhere else as an exception? Thanks again everyone! Link to comment Share on other sites More sharing options...
card Posted October 26, 2018 Share Posted October 26, 2018 From IRS Model 402(f) Notice: "If your payments for the year are less than $200 (not including payments from a designated Roth account in the Plan), the Plan is not required to allow you to do a direct rollover and is not required to withhold for federal income taxes. However, you may do a 60- day rollover." Link to comment Share on other sites More sharing options...
Stash026 Posted October 26, 2018 Author Share Posted October 26, 2018 Perfect, thank you! Link to comment Share on other sites More sharing options...
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