Retirement Planning

Is there a mandatory minimum withholding tax amount on my retirement plan distribution?

Retirement plan distributions eligible for rollover are subject to a mandatory 20% minimum withholding tax if you do not notify your employer to make a "direct rollover" transfer into another qualified employer plan. Do not have the funds issued directly to you, with the thought that you will then roll it over into another qualified employer plan. This will lead to the 20% withholding.

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