Tax withholdings for your IRA distributions

You can choose whether or not to have income taxes withheld from distributions made from your traditional IRA. If you do not want to have income taxes withheld, you must choose this option on your IRA distribution form found in your Resource Library “Forms” folder.  

If you choose to have income taxes withheld, the withholding amount cannot be less than 10% of the total distribution.

Generally, distributions of pre-tax amounts from your Traditional IRA or 401(k) Plan are subject to income tax, unless the amount is properly rolled over. In some cases, you can choose the level of income taxes withheld from the distribution, while in others tax withholding will be mandatory. Regardless, distributions are reportable to the IRS and which form you use, or receive will depend on what actions you take. 

The following is a high-level overview of some of the tax withholding rules that may apply to your distributions and some of the forms you may need to file with the IRS.


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