Tax Withholding Election for Conversion. Under IRS rules, a conversion of a Traditional IRA to a Xxxx XXX is treated for income tax purposes as a distribution of taxable amounts in the Traditional IRA. IRS rules also require the custodian to withhold 10% of the conversion amount for federal income taxes unless no withholding has been elected. See IRS Publication 505, Tax Withholding and Estimated Tax for more information. State tax withholding may also apply if federal income tax is withheld.
Tax Withholding Election for Conversion. Under IRS rules, a conversion of a Traditional IRA to a Xxxx XXX is treated for income tax purposes as a distribution of taxable amounts from the Traditional IRA. IRS rules also require the custodian to withhold 10% of the conversion amount for federal income taxes unless no withholding has been elected below. See IRS Publication 505, "Tax Withholding and Estimated Tax" for more information. State tax withholding may also apply if federal income tax is withheld. Caution: Withholding income taxes from the amount converted (instead of paying applicable income taxes from another source) may adversely impact the expected financial benefits of converting from a Traditional to a Xxxx XXX. Consult your financial adviser if you have a question. Because of this impact, by electing to convert a Traditional IRA to a Xxxx XXX, you are deemed to elect no withholding unless you check the box below: Withhold 10% for federal income taxes If you want a greater percentage, please indicate the percentage here: % Some states require state income tax withholding if federal taxes are withheld. If your IRA is located in one of these states, we will withhold the minimum required by your state unless you specify a higher amount below. Some states require withholding unless you specifically elect not to have tax withheld. We will automatically withhold the minimum required by your state unless you check one of the boxes below. I elect not to withhold state income tax I elect to withhold my state’s minimum requirement I elect to withhold the following percentage or specific dollar amount for state income tax (must be greater than your state’s minimum requirement) % or $
Tax Withholding Election for Conversion. Under IRS rules, a conversion of a Traditional IRA to a Xxxx XXX is treated for income tax purposes as a distribution of taxable amounts in the Traditional IRA. IRS rules also require the custodian to withhold 10% of the conversion amount for federal income taxes unless no withholding has been elected. See IRS Publication 505, “Tax Withholding and Estimated Tax” for more information. State tax withholding may also apply if federal income tax is withheld. Caution: Withholding income taxes from the amount converted (instead of paying applicable income taxes from another source) may adversely impact the expected financial benefits of converting from a Traditional to a Xxxx XXX (consult your financial adviser if you have a question). Because of this impact, by electing to convert a Traditional IRA to a Xxxx XXX, you are deemed to elect no withholding unless you check the box below: � Withhold 10% for federal income taxes (if you want a greater percentage, put it here: %)
